Suppose There Are Only Two Goods, a and B, and That

question 89

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

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Definitions:

Unifying Quality

A characteristic or attribute that brings or holds elements together in a coherent or cohesive manner.

Closing Sentence

The final sentence in a paragraph or document, meant to provide a sense of conclusion or sum up the main idea.

Counterproposal

A proposal offered in response to another proposal, typically aiming to negotiate or compromise on the original terms.

Affirmative Decision

A positive or confirming choice or resolution made after considering various options or arguments.