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Unformatted text preview: carrots are a normal and luxury good. D. peas and carrots are both normal goods and on the border between luxuries and necessities. E. peas and carrots are on the border between normal and inferior goods and are on the border between luxuries and necessities. 2 In the example, apples are a(n) A. Inferior good B. Normal good C. On the border between inferior and normal D. There is not enough information to tell For the following price change, the optimal bundle is likely to A. Be on line segment A D. Still be point D B. Be on line segment B E. There is not enough C. Be on line segment C information to tell...
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- Spring '08
- Utility, Line segment, Normal Goods, Lagrange Multiplier