Consider a Two-Good World,with Commodities X and Y

question 110

Multiple Choice

Consider a two-good world,with commodities X and Y.Which of the following statements is correct?

• A) Both X and Y must be normal goods.
• B) If good X is a normal good, good Y must be an inferior good.
• C) If good X is an inferior good, good Y must be a normal good.
• D) Both good X and good Y can be inferior goods.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Price Discrimination

A pricing strategy where the same product or service is sold at different prices to different customers, based on factors like demand, market conditions, or purchasing power.

Segments

Different parts or sections of a market, divided based on characteristics like demographics, needs, or preferences.

Profit-maximizing

The process or strategy of adjusting production and sales in order to achieve the highest possible profit from operations, considering both revenues and costs.