FIGURE 6-4 -Refer to Figure 6-4.For Both Goods,the Price Falls from P₀

Multiple Choice

FIGURE 6-4
-Refer to Figure 6-4.For both goods,the price falls 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 a(n) ________ good.

A) normal
B) inferior
C) luxury
D) necessity
E) Giffen