If Consumers' Income Increases by One Dollar and Consumers Consume

question 2

Multiple Choice

If consumers' income increases by one dollar and consumers consume both food and non-food,________.

• A) spending on food consumption will always increase.
• B) spending on food consumption will increase but by less than one dollar if both food and non-food are normal goods.
• C) spending on food consumption will increase only if non-food is inferior good.
• D) spending on food consumption will increase only if non-food is normal good.