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

question 168

Multiple Choice

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

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

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Definitions:

Demand Curve

A graph showing the quantity of a good that consumers are willing and able to purchase at various prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price level.