If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her.

Question

Anthony Cabinatan · Accepted Answer

Final Answer : True, Explanation :  If a consumer purchases more of both goods X and Y after an increase in income, it indicates that both goods are normal goods for her, as demand for inferior goods typically decreases with an increase in income.

If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her.

Definitions

Learning Objectives

Learning Objectives

Related questions