A. The price of good 1 increased and the goods are complements B. The price of good 2 decreased and the goods are complements C. The price of good 1 decreased and the goods are substitutes D. The price of good 2 decreased and the goods are substitutes E. The individual's income decreased and good # 1 is inferior and good #2 is normal F. The individual's income increased and good #2 is inferior and good #1 is normal

A. The price of good 1 increased and the goods are complements B. The price of good 2 decreased and the goods are complements C. The price of good 1 decreased and the goods are substitutes D. The price of good 2 decreased and the goods are substitutes E. The individual's income decreased and good # 1 is inferior and good #2 is normal F. The individual's income increased and good #2 is inferior and good #1 is normal

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give an example of inferior good and an example of normal good that you have encountered and how has change in income affected your spending in each case.
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Using the graph, determine the type of good X. The price increases from Po to P₁. The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C. Good X is certainly a(n) good. OA. Giffen B. luxury C. inferior D. normal E. necessity P₁ Price Po C B 00 Good X A D Quantity
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