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Min consumes only two goods, travel and food. We are told that travel are normal, whereas food is inferior for her, where food is represented
Min consumes only two goods, travel and food. We are told that travel are normal, whereas food is inferior for her, where food is represented on the horizontal axis and travel on the vertical axis. Which of the following statements is always true?
A. As the price of food decreases, she consumes strictly less food.
B. The income-offer curve is upward sloping.
C. The income-offer curve is downward sloping.
D. As income increases, Min does not spend all of her income.
E. Her preferences cannot be represented with a utility function.
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