FIGURE 6-5 -Refer to Figure 6-5. for Both Goods, the Price Increases

Multiple Choice

FIGURE 6-5
-Refer to Figure 6-5. For both goods, the price increases 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) inferior
B) normal
C) luxury
D) necessity
E) Giffen