Exhibit 10-5 Refer to Exhibit 10-5.The graph on the right implies that:
A) clothing is a normal good and low quality meat is a normal good.
B) clothing is a normal good and low quality meat is an inferior good.
C) clothing is an inferior good and low quality meat is a normal good.
D) clothing is an inferior good and low quality meat is an inferior good.

Question

Exhibit 10-5  Refer to Exhibit 10-5.The graph on the right implies that:
A) clothing is a normal good and low quality meat is a normal good. 
B) clothing is a normal good and low quality meat is an inferior good. 
C) clothing is an inferior good and low quality meat is a normal good. 
D) clothing is an inferior good and low quality meat is an inferior good.

Quizplus · Accepted Answer

The graph shows that as income increases, the quantity demanded of clothing also increases, indicating that clothing is a normal good. However, as income increases, the quantity demanded of low quality meat decreases, indicating that it is an inferior good. Therefore, B is the correct answer.