John Increases His Consumption of Good X and Good Y

question 416

Multiple Choice

John increases his consumption of Good X and Good Y when his income increases. For John

• A) Good X and Good Y are substitute goods.
• B) Good X and Good Y are complement goods.
• C) Good X is an inferior good.
• D) Good X and Y are normal goods

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Definitions:

Optimal Consumption Bundle

The combination of goods and services that maximizes a consumer's utility for a given level of income and prices.

E-Books

Electronic versions of printed books which can be read on a computer or a specifically designed handheld device.

Sports Tickets

Tickets purchased for the purpose of attending sporting events.

Indifference Curve

A graphical representation of different bundles of goods between which a consumer is indifferent.