The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in thefollowing table.Income$ 5,0006,000A7064Quantity ConsumedB3542C1016D2012Which product(s) listed is(are) an example of an normal good?

For a normal good, the income effect is constant. Which means that as consumer income increase,…

The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the following table A 70 64 Quantity Consumed B с 35 10 42 16 Income $5,000 6,000 Which product(s) listed is(are) an example of an normal good? D 20 12

The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the following table A 70 64 Quantity Consumed B с 35 10 42 16 Income $5,000 6,000 Which product(s) listed is(are) an example of an normal good? D 20 12

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the
following table.
Income
$ 5,000
6,000
A
70
64
Quantity Consumed
B
35
42
C
10
16
D
20
12
Which product(s) listed is(are) an example of an normal good?

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Please sir provide the answer of last part of the question (part-d)
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10. What happens to the demand curve for an inferior good if a consumer's income increases? Show me using a diagram, please.
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) Suppose there are two goods, X and Y. The price of good X is $5, the price of good Y is $3, and your income is $60. Neatly graph your budget line and label the intercepts. (a) What is the slope of your budget line? (b) How many units of good Y do you give up per unit of good X? (c) Suppose the price of good X rises to $6, show what happens to the budget line and label any new intercepts. (d) What is the new slope of the budget line? How many units of good Y do you now give up per unit of good X? (e) Suppose the price of good X only rises to $6 once you have purchased six units of good X. In other words, it is $5 per unit for the first six units and $6 per unit thereafter. Make a new graph of this "kinked" budget constraint.
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10) Figure 1 shows some indifference curves and budget lines for consumer Yusuf. Milk A B Cheese Figure 1 If Yusuf's income increases, his optimal consumption changes from point A to point B. Which of the following statements is true for Yusuf? (a) Cheese and milk are substitutes. (b) Cheese is an inferior good. (c) Milk is an inferior good . (d) Milk is a normal good. (e) None of the above.