Suppose the price of good X falls and the consumption of good X increases.From this we can infer that X is a(n)
A) normal good.
B) inferior good.
C) Giffen good.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The increase in consumption of good X when its price falls is consistent with the law of demand, which applies to both normal and inferior goods. However, it does not provide enough information to classify X specifically as a normal or inferior good, nor does it indicate that X is a Giffen good, which would require consumption to decrease as the price falls.

Suppose the Price of Good X Falls and the Consumption