Consider a graph on which one good Y is on the vertical axis and the only other
Question:
Consider a graph on which one good Y is on the vertical axis and the only other good X is on the horizontal axis. On this graph the income-consumption curve has a negative slope for low incomes, then it takes a zero slope for a higher income, and then it takes a positive slope for even higher incomes (the curve looks like a U-shape, first falling and then rising as income increases). This curve illustrates that:
A) At low income level X is an inferior good, and at high income level Y is a normal good.
B) At low income level Y is a normal good, and at high income level X is an inferior good.
C) At low income level Y is an inferior good, and at high income level both are normal good.
D) At low income level both are inferior good, and at high income level both are normal good.
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave