Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

The diagram illustrates two indifference curves alongside two budget lines for goods X and Y. The starting point is P. P-R shows the substitution effect. R-S shows the income effect. What type of good is good X?

  • Aa Giffen good
  • Ba luxury good
  • Ca normal good
  • Dan inferior good

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