When Matt Has an Income of $2,000, He Consumes 30

question 542

Multiple Choice

When Matt has an income of $2,000, he consumes 30 units of good A and 50 units of good B. After Matt's income increases to $3,000, he consumes 25 units of good A and 95 units of good B. Which of the following statements is correct?

• A)Both goods A and B are normal goods.
• B)Both goods A and B are inferior goods.
• C)Good A is a normal good, and good B is an inferior good.
• D)Good A is an inferior good, and good B is a normal good.

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Definitions:

Sales Commissions

Payments made to sales employees or agents as a percentage of the sales they generate, serving as an incentive for higher sales performance.

Sales Volume

The quantity of units sold within a specific period, often used to measure a company's activity level or performance.

Units

A measurement for quantifying or expressing the amount of a product, service, or resource, used for purchasing, production, or accounting purposes.

Lease Cost

The expense incurred from leasing assets, such as machinery or office space, typically involving periodic payments.