The figure given below shows the budget lines of an individual. The quantity of Good X...

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The figure given below shows the budget lines of an individual. The quantity of Good X is measured along the x-axis, and that of the Good Y along the y-axis. PQ is the initial budget line. If point C becomes the preferred consumption point of the individual after the shift in the budget line, it indicates that: Good Y 0 e. B A OE Good X Q S Select one: O a. Good X is a luxury good, but Good Y is an inferior good. O b. both Good X and Good Y are inferior goods. O C. Good X is an inferior good, but Good Y is a normal good. O d. Good X is a normal good, but Good Y is an inferior good both Good X and Good Y are normal goods. The figure given below shows the budget lines of an individual. The quantity of Good X is measured along the x-axis, and that of the Good Y along the y-axis. PQ is the initial budget line. If point C becomes the preferred consumption point of the individual after the shift in the budget line, it indicates that: Good Y 0 e. B A OE Good X Q S Select one: O a. Good X is a luxury good, but Good Y is an inferior good. O b. both Good X and Good Y are inferior goods. O C. Good X is an inferior good, but Good Y is a normal good. O d. Good X is a normal good, but Good Y is an inferior good both Good X and Good Y are normal goods.

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The figure illustrates two budget lines for an individual with points A B C D and E representing dif... View the full answer