Answer
a) No
b) Fewer crackers are consumed, and more cheese is consumed.
Work Step by Step
a) Both goods cannot be inferior goods. As income increases, consumption of either good (or both goods) must increase.
b) Since cheese is a normal good and crackers are an inferior good, an decrease in the price of cheese will increase consumption of cheese. The increased consumption of cheese (a normal good) will decrease consumption of crackers (an inferior good).
