CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which graph in the following figure best represents a good that is an inferior good at some income levels and a normal good at other income levels?

A. A
B. B
C. C
D. D
Correct Answer: A

User Contributed Comments 3

User Comment
nabilhjeily please explain this one
gill15 As income increases initially by looking at graph A you consume more of the good(definition of a normal good)and as income continues to increase you start consuming less of it (Inferior)
3788wuz inferior goods at one price level and normal goods at another price level indicating a change of direction as they have opposite reaction to increase in income. A is only graph with a change of rection.
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