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bgoodwi1 bgoodwi1
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5 years ago
An individual derives utility from games, g (y-axis), and toy airplanes, a (x-axis), described by the utility function U(g,a) = g0.6a0.4. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC), determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200.
A) Both goods are normal goods with an ICC slope of  .
B) Both goods are normal goods with an ICC slope of  .
C) Both goods are inferior goods with an ICC slope of -  .
D) Both goods are inferior goods with an ICC slope of -  .
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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