Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 6

The diagram shows an indifference map and two budget lines. When the consumer's budget line shifts from BL1 to BL2, consumption changes from point W to point Z. [diagram: indifference map with curves I1, I2, budget lines BL1, BL2, points W and Z, axes good Y and good X] What do these changes indicate about the nature of goods X and Y?

1. Agood X normal, good Y inferior
2. Bgood X normal, good Y normal
3. Cgood X inferior, good Y normal
4. Dgood X inferior, good Y inferior

As printed in the paper