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Please answer correct explain plz Don't answer by pen paper The figure below shows how a certain consumer chooses between food and clothing. The initial
Please answer correct explain plz
Don't answer by pen paper
The figure below shows how a certain consumer chooses between food and clothing. The initial equilibrium is point A. The price of food drops and rotates the budget line outwards from horizontal intercept S to T, which causes the consumption point to move from point A to B. Is the food in this market considered a normal good or an inferior good? Explain.
Clothing (units per month) R B D ......... . .. . .. U1 F1 FES T Food O (units per month)Step by Step Solution
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