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d. ice cream is an economic bad and chocolate cake is an economic good. 21. During an economic expansion when consumer income

21 and 22 please

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Answer #1

21. An increase in income of consumer leads to increase in demand for normal goods. Therefore, ice cream is a normal good.

An increase in income of consumer leads to decrease in demand for inferior goods. Therefore, chocolate cake is an inferior good.

Answer: Option (B)

NOTE: For question number 22, there is a need of figure 4.7

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