D. Suppose there are only two normal goods in the economy, X and Y. If price of good X increases, which would be the correct statement from below?
1
Demand for good X decreases and demand for Y is indeterminate.
2
Demand for good X decreases and demand for Y decreases.
3
Demand for good X increases and demand for Y is indeterminate.
4
Demand for good X increases and demand for Y decreases.