The following figure shows a portion of a consumer’s indifference map and budget lines. The price of good Y is $7 and the consumer’s income is $700. Let the consumer begin in utility-maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II. Good X is a(an) _____ good and thus cannot be a ______ good.
Multiple Choice
Giffen; normal
Giffen; substitute
normal; Giffen
substitute; Giffen
inferior; Giffen
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