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

question 287

Multiple Choice

When Ryan has an income of $2,000, he consumes 30 units of good A and 50 units of good B. After Ryan's income decreases to $1,500, he consumes 23 units of good A and 55 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.

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Definitions:

Algebraic Expression

An expression constructed from integers, variables, and algebraic operations.

Antifreeze

A liquid added to the water in a cooling system to lower its freezing point, commonly used in automobile engines.

Cooling System

A system designed to remove heat from an area or machinery, commonly using a fluid or air to transfer heat away.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols, but no equality sign.