Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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