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An Individual Derives Utility from Games, G (Y-Axis), and Toy

Question 62

Multiple Choice

An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g0.6a0.4. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200.


A) Both goods are normal goods with an ICC slope of An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g<sup>0.6</sup>a<sup>0.4</sup>. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200. A) Both goods are normal goods with an ICC slope of . B) Both goods are normal goods with an ICC slope of . C) Both goods are inferior goods with an ICC slope of - . D) Both goods are inferior goods with an ICC slope of - . .
B) Both goods are normal goods with an ICC slope of An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g<sup>0.6</sup>a<sup>0.4</sup>. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200. A) Both goods are normal goods with an ICC slope of . B) Both goods are normal goods with an ICC slope of . C) Both goods are inferior goods with an ICC slope of - . D) Both goods are inferior goods with an ICC slope of - . .
C) Both goods are inferior goods with an ICC slope of - An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g<sup>0.6</sup>a<sup>0.4</sup>. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200. A) Both goods are normal goods with an ICC slope of . B) Both goods are normal goods with an ICC slope of . C) Both goods are inferior goods with an ICC slope of - . D) Both goods are inferior goods with an ICC slope of - . .
D) Both goods are inferior goods with an ICC slope of - An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g<sup>0.6</sup>a<sup>0.4</sup>. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200. A) Both goods are normal goods with an ICC slope of . B) Both goods are normal goods with an ICC slope of . C) Both goods are inferior goods with an ICC slope of - . D) Both goods are inferior goods with an ICC slope of - . .

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