Josh is currently consuming some of good X and some of good Y.If good Y is a normal good for Josh,an increase in his income will definitely cause him to
A) increase his consumption of X.
B) increase his consumption of Y.
C) decrease his consumption of X.
D) decrease his consumption of Y.

Question

Quizplus · Accepted Answer

If good Y is a normal good for Josh and his income increases, he will have more money to spend overall. Therefore, he will increase his consumption of good Y, which is a normal good for him. However, there is no reason to assume that his income increase will necessarily lead to a decrease in his consumption of good X or an increase in his consumption of good Y. Therefore, choices A, C, and D are incorrect.

Josh Is Currently Consuming Some of Good X and Some