FIGURE 6-4 -Refer to Figure 6-4.For Both Goods,the Price Falls from P₀

question 65

Multiple Choice

FIGURE 6-4
-Refer to Figure 6-4.For both goods,the price falls from P₀ to P₁.The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C.Good Y is certainly a(n) ________ good.

• A)normal
• B)inferior
• C)luxury
• D)necessity
• E)Giffen

---

Definitions:

Hydraulic Press

A device using hydraulic power to generate a compressive force, widely used in metal forming, moulding, and various industrial applications.

RSC System

Roll Stability Control system, an active safety feature designed to help prevent vehicle rollover by adjusting engine power and applying brakes to specific wheels.

Chassis Data Bus

A network within a vehicle that allows for the transfer of data between electronic control units and devices.

Driveline Retarder

A device used to reduce the speed of a vehicle by applying resistance to the driveline, aiding in braking.