3. You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down, and you are just as happy as you were before the price changes. a. Illustrate this situation on a graph. b. How does your consumption of the two goods change? How does your response depend on in- come and substitution effects? c. Can you afford the bundle of soda and pizza you consumed before the price changes? 4. Mario consumes only cheese and crackers. a. Could cheese and crackers both be inferior goods for Mario? Explain. b. Suppose that cheese is a normal good for Mario d. Use points A and Cup O' Soup. Wha 8. Consider your decisio work. a. Draw your budge you pay no taxes o diagram, draw an that you pay 15 pe b. Show how the tax work, fewer hours Explain. 9. Sarah is awake for 10 gram, show Sarah's b per hour, $8 per hour

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