why does a substitution between goods cause a negative slope on a demand curve?

(In this question we denote income by Y, not by W as in the lecture notes). The following figure shows the consumption of x and y for two market situations. The income effect of a change in price of x from px to px’ is? Negative and is dominated by the substitution effect. Positive and reinforces the substitution effect. Positive and dominates the substitution effect. Negative and dominates the substitution effect. Negative and reinforces the substitution effect.

Why do we decompose the price effect into income and substitution effects?

Consider the increase in the price of a can of soda and assume that soda is a normal good. Describe how the income and substitution effects impact on the demand for the cola if its price increases. Also describe how these two effects interact for inferior goods if there is a fall in the price of the good. Use bullet points

Which of the following statements is true for a Giffen good?   (a) Following a fall in the price of the good, there will be a decrease in the quantity demanded due to the substitution effect; an increase in the quantity demanded due to the income effect; the substitution effect will outweigh the income effect. (b) Following a fall in the price of the good, there will be an increase in the quantity demanded due to both the substitution and income effect and the two effects will therefore reinforce each other. (c) Following a fall in the price of the good, there will be an increase in the quantity demanded due to the substitution effect; a decrease in the quantity demanded due to the income effect; the substitution effect will outweigh the income effect. (d) Following a fall in the price of the good, there will be an increase in the quantity demanded due to the substitution effect; a decrease in the quantity demanded due to the income effect; the income effect will outweigh the…

Suppose that Sam has a utility function u(x, y)= x+y where x is the amount of good 1 and y is the amount of good 2. The price of good 2 is $20, and the income is $ 90. With the $5 price decrease of good 1 from $10 to $5, then what is the substitution effect and income effect on the demand for good 1?

For Sara, ramen noodles are a normal good, however Sean considers ramen noodles to be inferior. If Sara and Sean have the same amount of income, Sean's demand for ramen noodles will be less price elastic than Sara's. Please explain why in detail using the substitution effect and income effect graphs.

Suppose that the price of good A increases, the demand for good B increases. This shows that good A and good B are substitute goods complement goods not related