2 6 3 Unit of a Good 5 A the figure above. The consumer\'s total utility is incr

Question

2 6 3 Unit of a Good 5 A the figure above. The consumer's total utility is increasing at an increasing rate. B) increasing at a decreasing rate. C) decreasing at an increasing rate. D) decreasing at a decreasing rate. E) constant. If the uppose there are only two goods, A and B, and that consumer income is constant ce of good A falls and the consumption of good B rises, we can conclude that A) A is a normal good. B) B is a normal good. C) A is an inferior good. ) B is an inferior good. both A and B are normal goods.

Explanation / Answer

6.1 figure not shown.

6.2 B> B is a normal good

Reason

If the price of A falls, he has more relative income, thus we can think of this scenario as an increase in income. The consumption of B also increased, this means that B has to be a normal good.

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