is four The price of Salternative, a salt substitute, falls and we find that the substitution effect =0/9 while the income effect is five 4 units of Salternative Wille 5 units of Salternative Aw shucks! Those dreadful little logomen are blocking out the plus and/or minus signs. In other words, we do not know the direction of the effects, but only their magnitude. a. If Salternative is a normal good, the total change in quantity demanded will be Please write in a minus sign if one is warranted. b. If Salternative is an inferior good, the total change in quantity demanded will be Please write in a minus sign if one is warranted. c. Could Salternative be a Giffen good? In a sentence or two, briefly explain why or why not.

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.