Use the following to answer questions :
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese.
-(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 kilogram,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 questions :
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese. 
-(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 kilogram,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

If Harold's income increases and he is still consuming the same amount of bread and cheese, then his current consumption bundle must still be on one of his indifference curves. If his income increases from $10 to $14 and he chooses to consume more bread and cheese (i.e. moves to a higher indifference curve), then bread and cheese are both normal goods. Therefore, D is the correct choice.

Use the Following to Answer Questions