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 BCĮ to BC₂. Move theindifference curve to signify that good Y is an inferior good.Good YGood XBCBC2

In the field of economics, an inferior good refers to a product that experiences a decline in demand…

Answered: b. The graph shows that if good Y is…

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

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 BCĮ 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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