If a consumer is given a $10 gift certificate, good for items in store X and all items in store X are inferior goods, then consumer desires to consume

  • Less goods in store X

If a consumer is given a $10 gift certificate, good only for items in store X and all items in store X are normal goods, then the consumer desires to consume

  • More goods in store X

If an increase in the price of good X leads to a decrease in the consumption of good Y, then goods X and Y are called

  • Complements

If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called

  • Substitutes

If the slope of the indifference curve is steeper than the slope of the budget line, and X is on the horizontal axis

  • The consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices