Answer Happy

Posted: **Sun Jul 03, 2022 1:05 pm**

: Upload A File With Your Answer To The Following Suppose That Sonya Faces An Increase In The Price Of Pasta As Depicted 1 (35.78 KiB) Viewed 12 times

: Upload A File With Your Answer To The Following Suppose That Sonya Faces An Increase In The Price Of Pasta As Depicted 2 (35.47 KiB) Viewed 12 times

Upload a file with your answer to the following. Suppose that Sonya faces an increase in the price of pasta, as depicted below, moving her from an optimum bundle of rice and pasta at A to an optimum bundle at B. (20 points) Quantity of pasta (cups) 10 9 8 7 6 5 4 3 2 1 0 0 BC1 BC2 2 A B A' 3 4 5 Quantity of rice (cups) ☺ 6 7 U 2 8 BC" 9 10
0 0 2 3 6 4 5 Quantity of rice (cups) 7 U 8 9 10 1. What is the total effect of the price change on Sonya's demand for pasta (as a number)? (4 points) 2. What is the substitution effect of the price change on pasta (as a number)? (4 points) 3. Is pasta an ordinary or Giffen good? Explain why. (4 points) 4. What is the income effect of the price change on pasta (as a number)? (4 points) 5. Is pasta a normal or an inferior good? Explain why. (4 points)