Question: The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same
The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same two prices of good X (the right panel). The price of good Y is $4.50. When the price of X increases from point S to point R along the demand curve, it is clear that good X _____ (is, is not) a Giffen good because _____. Multiple Choice is not; good X is an inferior good. is not; the substitution effect reinforces the income effect. is; the income effect is larger than the substitution effect. is; the income effect reinforces the substitution effect. is; the total effect of the price increase is negative
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