The diagram illustrates two indifference curves together with two budget lines for goods X and Y. The consumer’s starting equilibrium is point R. The budget line changes from Y1X1 to Y2X2 and the consumer’s new equilibrium is point S. What can be said with certainty about good X?
- AIt is a Giffen good.
- BIt is an inferior good.
- CIt is a normal good.
- DIt is a public good.