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

question 29

Multiple Choice

Consider a two-good world,with commodities X and Y.If Y is an inferior good,then an increase in consumer income CANNOT:

• A) decrease the demand for Y.
• B) decrease the demand for X.
• C) increase the demand for X.
• D) make the consumer better off.

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Definitions:

Reliable

Capable of being trusted or depended on; consistently good in quality or performance.

Metaphor

A descriptive type of analogy, frequently found in literature.

Necessarily Follows

A logical condition where the conclusion is an inevitable result of the premises; if the premises are true, then the conclusion cannot be false.

Inductive

A method of reasoning in which the premises are viewed as supplying strong evidence for the truth of the conclusion.