27. When Sam has an income of $1,000, he consumes 30 units of good A and 50 units of good B. After Sam's income increases to $1,500, he consumes 60 units of good A and 40 units of good B. Which of the following statements is correct? a. Both goods A and B are normal goods b. Both goods A and B are inferior goods c. Good A is a normal good, and good B is an inferior good d. Good A is an inferior good, and good B is a normal good

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.