Rob Consumes Two Goods, X and Y

question 40

Multiple Choice

Rob consumes two goods, x and y.He has an allowance of $50 per week and is not endowed with either of the goods.If the price of good x increases and his substitution and income effects change demand in opposite directions,

• A)good x must be a Giffen good.
• B)good x must be an inferior good.
• C)WARP is violated.
• D)good x must be a normal good.
• E)There is not enough information to judge whether good x is a normal or inferior good.

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Definitions:

Work Groups

Teams or groups of individuals who collaborate together to achieve common goals or complete specific tasks within an organization.

Leadership

The ability to influence employees to work toward organizational goals.