Suppose that a consumer consumes only two goods good x and


Suppose that a consumer consumes only two goods, good x and good y. Assume that (q=20, I=50) and (q'=23, I'=60) are two points on the consumer's Engle curve for good x. Assume that good y is a normal good. Which of the following statements is true?

A. The income elasticity of good y is negative.

B. The income elasticity of good x is positive.

C. The income consumption curve between good x and good y has a negative slope.

D. The Engel curve for good y has a negative slope.

E. None of the above.

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Business Management: Suppose that a consumer consumes only two goods good x and
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