If the income-consumption path slopes upward,then
A) Both goods are normal goods
B) Both goods are inferior goods
C) The goods are substitutes
D) The goods are complements

Question

Quizplus · Accepted Answer

When the income-consumption path slopes upward, it means that as the individual's income increases, the consumption of both goods also increases. This is a typical characteristic of normal goods, which are goods with a positive income elasticity of demand. When the income of consumers increases, their demand for normal goods also increases, leading to an upward-sloping income-consumption path. Therefore, the best choice is A) Both goods are normal goods.

If the Income-Consumption Path Slopes Upward,then