Answer to Question #124878 in Microeconomics for Ujaala Mehar

Question

An individual consumes two goods and her preferences satisfy non-satiation. It
follows that at least one of the two goods must be a normal good. Is this true or
false? Explain your answer.

Answer 1

Yes, it is true! If someone has the choice to consume two goods, and his preferences satisfy non-satiation then he consumes only one good out of the two. Suppose consumer has the choice of two goods X and Y, then he prefer X on the place of Y at constant rate, which will keep his level of utility at constant rate.