If the income-consumption path slopes down,then:
A) both goods are inferior.
B) both goods are normal.
C) one good is normal and the other good is inferior.
D) we can't tell anything about whether the goods are normal or inferior.

Question

Quizplus · Accepted Answer

If the income-consumption path slopes down, it suggests that the consumer is purchasing less of one good as their income increases. This indicates that one good is inferior (less income means more of that good is purchased) and the other good is normal (as income increases, the consumer purchases more of that good).

If the Income-Consumption Path Slopes Down,then