Suppose There Are Only Two Goods,A and B,and That Consumer

question 62

Multiple Choice

Suppose there are only two goods,A and B,and that consumer income is constant.If the price of good A falls and the consumption of good B rises,we can conclude that

• A)A is a normal good.
• B)B is a normal good.
• C)A is an inferior good.
• D)B is an inferior good.
• E)both A and B are normal goods.

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Definitions:

Broccoli

A green vegetable with a large flowering head, stalk, and small associated leaves, often eaten for its nutritional qualities.

Marginal Utility per Dollar

The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.

Potatoes

Tubers of the plant Solanum tuberosum, widely used as a staple food item, grown in various parts of the world.

Clams

Marine or freshwater mollusks with a bivalve shell, often used as food.