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The Following Figure Shows a Portion of a Consumer's Indifference

Question 40

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The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.Good X is a(an) ___________ good and thus cannot be a _________ good. The following figure shows a portion of a consumer's indifference map and budget lines.The price of good Y is $7 and the consumer's income is $700.Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I.Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II.Good X is a(an) ___________ good and thus cannot be a _________ good.   A) normal; Giffen B) inferior; Giffen C) substitute; Giffen D) Giffen; normal E) Giffen; substitute


A) normal; Giffen
B) inferior; Giffen
C) substitute; Giffen
D) Giffen; normal
E) Giffen; substitute

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