Microsoft Word – Problem Set 3 QuestionsIn 2014, Peter spent his income on two goods only, x and y. Between 2014 and 2015, the price of good x rose by 8% and the price of good y rose by 8%. Peter bought the same amount of x in 2015 as in 2014, but bought more y in 2015. What can we say about goods x and y, i.e., can we be sure if one of them is a normal good or inferior good?
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