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What about in the diagram below? This time, the consumer is in equilibrium at E and Px falls from Pxo to PX1. I/Py G U₁ g E F I/PXo Uo X I/PX1 5) In this case, are good X and good Y substitutes or complements, and why? (2 marks) 6) In this case is, good X normal or inferior, and why? (2 marks)

What about in the diagram below? This time, the consumer is in equilibrium at E and Px falls from Pxo to PX1. I/Py G U₁ g E F I/PXo Uo X I/PX1 5) In this case, are good X and good Y substitutes or complements, and why? (2 marks) 6) In this case is, good X normal or inferior, and why? (2 marks)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What about in the diagram below? This time, the consumer is in equilibrium at E and Px falls from Pxo to PX1. I/Py G U₁ g E F I/PXo Uo X I/PX1 5) In this case, are good X and good Y substitutes or complements, and why? (2 marks) 6) In this case is, good X normal or inferior, and why? (2 marks)
Transcribed Image Text:What about in the diagram below? This time, the consumer is in equilibrium at E and Px falls from Pxo to PX1. I/Py G U₁ g E F I/PXo Uo X I/PX1 5) In this case, are good X and good Y substitutes or complements, and why? (2 marks) 6) In this case is, good X normal or inferior, and why? (2 marks)
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