Refer to the figure at right. Last week Joe consumed combination "B" of goods "X" and "Y." This week he purchased combination "A." The reason for this change is that the OA. price of good Y has decreased. OB. price of good X has decreased. OC. price of good Y has increased. OD. price of good X has increased.

Refer to the figure at right. Last week Joe consumed combination "B" of goods "X" and "Y." This week he purchased combination "A." The reason for this change is that the OA. price of good Y has decreased. OB. price of good X has decreased. OC. price of good Y has increased. OD. price of good X has increased.

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

Refer to the figure at right. Last week Joe consumed combination "B" of goods "X" and "Y." This week he
purchased combination "A." The reason for this change is that the
OA. price of good Y has decreased.
OB. price of good X has decreased.
OC. price of good Y has increased.
OD. price of good X has increased.
B
Good Y
YA
B
A
XB XA
Good X
U₁
Uo

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