Suppose that you maximize your utility given income and prices and consume only apricots and raspberries. Your preferences are monotonic. If the price of apricots goes up, I observe you buying fewer raspberries. Which of the following statements would be consistent with this observation (Hint: Drawing a graph might help you find the answer) :

Question

Suppose that you maximize your utility given income and prices and consume only apricots and raspberries. Your preferences are monotonic. If the price of apricots goes up, I observe you buying fewer raspberries. Which of the following statements would be consistent with this observation  (Hint: Drawing a graph might help you find the answer) :

Answer

Rapsberries are normal and apricots are inferior.

Answer

None of these statements is consistent with the observed behavior.

Answer

Both rapsberries and apricots are inferior.

Answer

Rapsberries are inferior and apricots are normal.

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Suppose that you maximize your utility given income and prices and consume only ...

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