Multiple Choice
Use the following to answer questions:
Figure: Income and Substitution Effects
-(Figure: Income and Substitution Effects) Look at the figure Income and Substitution Effects. Carlos is consuming his optimal consumption bundle at point A when the price of gasoline falls. As Carlos moves to his new optimal consumption bundle, we observe that gasoline:
A) is not an ordinary good.
B) is a normal good.
C) is an inferior good.
D) and good L are complements.
Correct Answer:

Verified
Correct Answer:
Verified
Q72: Assume that diminishing marginal utility applies to
Q73: The marginal rate of substitution shows how
Q74: Use the following to answer questions:<br>Figure: Consumer
Q75: Many people have severe food allergies such
Q76: James spends his daily income of $50
Q78: Consumption of more of a good that
Q79: Use the following to answer questions:<br>Figure: Consumer
Q80: Suppose Sirach knows that the price of
Q81: Mario sees popcorn and pretzels as perfect
Q130: To find her optimal consumption bundle,Vanessa would