The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____.
A)complements
B)substitutes
C)inferior goods
D)normal goods
E)luxury goods

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____.
A)complements 
B)substitutes 
C)inferior goods 
D)normal goods 
E)luxury goods

Quizplus · Accepted Answer

According to the given information, an increase in income results in a decline in the quantity of potatoes purchased. Therefore, potatoes can be categorized as an inferior good.

The Figure Given Below Shows the Demand Curves for Five