Figur e 21-17 Refe r to Figure 21-17. When the price of X is $6, the price of Y
ID: 1201847 • Letter: F
Question
Figure 21-17
Refer to Figure 21-17. When the price of X is $6, the price of Y is $24, and income is $48, Paul’s optimal choice is point C. Then the price of Y decreases to $8. Paul’s new optimal choice is point
A.
B.
D.
E.
Refer to Figure 21-17. When the price of X is $6, the price of Y is $24, and income is $48, Paul’s optimal choice is point C. Then the price of Y decreases to $6. Paul’s new optimal choice is point
A.
B.
D.
E.
Refer to Figure 21-17. When the price of X is $40, the price of Y is $40, and income is $160, Paul’s optimal choice is point B. Then Paul’s income increases to $320, and his optimal choice is point E. For Paul,
good X is a normal good, and good Y is an inferior good.
good X is an inferior good, and good Y is a normal good.
both good X and good Y are normal goods.
good Y is a normal good; good X is neither a normal nor an inferior good.
Explanation / Answer
Answer to question 1: D
Answer to question 2: E
Answer to question 3: both good X and good Y are normal goods.
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