-Refer to Figure 5.7.Which diagram best represents an income-consumption curve where soup is a normal good?
A) A
B) B
C) C
D) D

Question

-Refer to Figure 5.7.Which diagram best represents an income-consumption curve where soup is a normal good?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

The income-consumption curve for a normal good slopes upwards, indicating that as income increases, the consumption of the good also increases. Diagram C shows this relationship, as the curve moves upward to the right, reflecting an increase in the consumption of soup with an increase in income.