QUIZ3 - good 1 on the horizontal axis and quantity of good...

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Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen Quiz 3 You can use the back of this page as scrap. We will not look at the back when grading this quiz, so you should present your complete answer by the question. Make sure that you label all your axes and curves . You can use arrows to denote increases, shifts etc. No long full sentences are required for this quiz. Graph clearly and explain briefly if the following statements are true of false: (Put quantity of
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Unformatted text preview: good 1 on the horizontal axis and quantity of good 2 on the vertical axis. 1). (5 Points) If good 1 is an inferior good the substitution effect will reinforce the income effect after a decrease in p 1. 2). (5 Points) If good 1 is a Giffen good the substitution effect will reinforce the income effect after a decrease in p 1....
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