b. The graph shows that if good Y is inferior, good Xmust be normal.must also be inferior.must be a luxury good.may be normal or inferior. Individual and Market Demand- End of Chapter Problema. Suppose a consumer's income increases, resulting in an outward shift of her budget constraint from BC to BC₂. Move theindifference curve to signify that good Y is an inferior good.Good YGood XBCBC2

A budget restriction is a limit on how much a person or household can spend, showing the range of…

Answered: a. Suppose a consumer's income…

a. Suppose a consumer's income increases, resulting in an outward shift of her budget constraint from BC, to BC₂. Move the indifference curve to signify that good Y is an inferior good. Good Y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

b. The graph shows that if good Y is inferior, good X
must be normal.
must also be inferior.
must be a luxury good.
may be normal or inferior.

Individual and Market Demand- End of Chapter Problem
a. Suppose a consumer's income increases, resulting in an outward shift of her budget constraint from BC to BC₂. Move the
indifference curve to signify that good Y is an inferior good.
Good Y
Good X
BC
BC
2

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