Figure 21-16 -Refer to Figure 21-16.When the Price of X Is $40,the

Multiple Choice

Figure 21-16

-Refer to Figure 21-16.When the price of X is $40,the price of Y is $40,and income is $160,Steve's optimal choice is point B.Then Steve's income increases to $320,and his optimal choice is point E.For Steve,

A) good X is a normal good, and good Y is an inferior good.
B) good X is an inferior good, and good Y is a normal good.
C) both good X and good Y are normal goods.
D) good Y is a normal good; good X is neither a normal nor an inferior good.