Use the following to answer question:
-(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.Given that the price of bread is $1 per loaf and the price of cheese is $2 per pound,as Harold's income increases from $10 to $14,we can determine that bread is a(n)_____ good and cheese is a(n)_____ good.
A)inferior;inferior
B)normal;inferior
C)inferior;normal
D)normal;normal

Question

Use the following to answer question: 
-(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.Given that the price of bread is $1 per loaf and the price of cheese is $2 per pound,as Harold's income increases from $10 to $14,we can determine that bread is a(n)_____ good and cheese is a(n)_____ good.
A)inferior;inferior 
B)normal;inferior 
C)inferior;normal 
D)normal;normal

Quizplus · Accepted Answer

As Harold's income increases, if he consumes more of both bread and cheese, it indicates that both are normal goods. Inferior goods would see a decrease in consumption as income rises.

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