ECON 103 Show the effect of a rise in income on the demand for X and Y
University Of Pheonix
All 1 results
Sort by
-
ECON 103 Show the effect of a rise in income on the demand for X and Y ( LATEST UPDATE )
- Exam (elaborations) • 15 pages • 2021
-
- $12.99
- + learn more
ECON 103 Show the effect of a rise in income on the demand for X and Y. 
 
 
 
 
 
 
Show the effect of a rise in income on the demand for X and Y where this time Y is the inferior good and X is the normal good. Is the income–consumption curve positively or negatively sloped? 
Answer 
The curve will slope upwards at first, but become less and less steep. It will then peak at the point where Y becomes an inferior good, and will thereafter slope downwards (i.e. have a negative slope). 
 
Illustr...
Make study stress less painful
Study stress? For sellers on Stuvia, these are actually golden times. KA-CHING! Earn from your study resources too and start uploading now. Discover all about earning on Stuvia