Answer the questions. Please draw graphs, instructions on word for how to draw the graph is not enough. Let X1 on the horizontal axis and X2 on the vertical axis. (a) Suppose two ordinary goods X1 and X2 are substitutes in consumption. Using BLs and ICs, graphically derive the demand curve for X1. Explain your graph. (b) If X2 is a Giffen good, how to derive the demand curve for X2? (c) Is the inferior good the same as the Giffen good? Why or why not?

Answer the questions. Please draw graphs, instructions on word for how to draw the graph is not enough. Let X1 on the horizontal axis and X2 on the vertical axis. (a) Suppose two ordinary goods X1 and X2 are substitutes in consumption. Using BLs and ICs, graphically derive the demand curve for X1. Explain your graph. (b) If X2 is a Giffen good, how to derive the demand curve for X2? (c) Is the inferior good the same as the Giffen good? Why or why not?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 3SQ

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