FIGURE 6-4 -Refer to Figure 6-4. for Both Goods, the Price Falls

question 13

Multiple Choice

FIGURE 6-4
-Refer to Figure 6-4. For both goods, the price falls from P0 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 an) good.

• A) normal
• B) inferior
• C) luxury
• D) necessity
• E) Giffen