Answer to Question #82295 in Microeconomics for Achraf Salmane

Question

draw a ump graph where x and y are both inferiore goods
hint ( its impossible) how can i solve this ?

Answer 1

If consumer buys only two goods and both of them are inferior, then in case of increase in income he will proportionally increase consumption of both goods and these goods will become normal goods. So, the graph containing budget line and indifference curves will be the same as for two normal goods.