Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n)(i)normal good.
(ii)inferior good.
(iii)Giffen good.
A)(i) only
B)(i) or (ii) only
C)(iii) only
D)(ii) or (iii) only

Question

Quizplus · Accepted Answer

When the price of a good falls and its consumption increases, it indicates a normal response to price change, which can occur for both normal and inferior goods. Giffen goods, however, would see a decrease in consumption when the price falls.

Suppose the Price of Good X Falls and the Consumption