alleryStart learning →With a new budget constraint, a consumer chooses point N if both goods are:
APublic goods
BNormal goods
CInferior goods
DFree goods
Answer & Solution
Correct answer: B. Normal goods
1. The chosen point depends on how each good responds to income.
2. A shift in the budget constraint moves the consumer to a new choice.
3. On the new budget constraint, Kimberly will make a choice like N.
4. That happens if both goods are normal goods.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
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