FIGURE 6-4 -Refer to Figure 6-4. for Both Goods, the Price Falls

Multiple Choice

FIGURE 6-4
-Refer to Figure 6-4. For both goods, the price falls from P0 to P1. The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C. Good Y is certainly an) good.

A) normal
B) inferior
C) luxury
D) necessity
E) Giffen