Suppose the price of good x falls and the consumption of good x increases.From this we can infer that
A)x is a normal good.
B)x is an inferior good.
C)x is a Giffen good.
D)None of the above

Question

Quizplus · Accepted Answer

The increase in consumption of good x when its price falls is consistent with the law of demand, which applies to both normal and inferior goods. However, without additional information about income effects, we cannot definitively classify x as normal, inferior, or Giffen based solely on this observation.

Suppose the Price of Good X Falls and the Consumption