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Figure 21-17 -Refer to Figure 21-17. When the Price of X Is

Question 493

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Figure 21-17 Figure 21-17 -Refer to Figure 21-17. When the price of X is $40, the price of Y is $40, and income is $160, Paul's optimal choice is point B. Then Paul's income increases to $320, and his optimal choice is point E. For Paul, 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.
-Refer to Figure 21-17. When the price of X is $40, the price of Y is $40, and income is $160, Paul's optimal choice is point B. Then Paul's income increases to $320, and his optimal choice is point E. For Paul,


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.

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