When Matt Has an Income of $2,000, He Consumes 30

question 542

Multiple Choice

When Matt has an income of $2,000, he consumes 30 units of good A and 50 units of good B. After Matt's income increases to $3,000, he consumes 25 units of good A and 95 units of good B. Which of the following statements is correct?

• A)Both goods A and B are normal goods.
• B)Both goods A and B are inferior goods.
• C)Good A is a normal good, and good B is an inferior good.
• D)Good A is an inferior good, and good B is a normal good.