Read the two statements and choose the correct option.

I. Whether a good is normal or inferior can differ from one consumer to another.

II. A good that is normal at low incomes can become inferior at high incomes.

Explanation

1. 01

   Both are true: the label depends on how a particular buyer's demand responds to his income.

2. 02

   A poor household may buy more coarse grain as income first rises, then less once it can afford better food.