Problem: Ariel enjoys eating sugar snap peas. At the local farm, she can purchase pints of snap peas. She buys 8 pints when the price is $10 per pint and her income is $2,000 per month. When the price of a pint decreases to $8, without any change in Ariel's income, she purchases 12 pints of peas.
a) Does this situation represent a change along Farah's demand curve or a shift of the demand curve? Illustrate Ariel's demand for snap peas with a graph.
b) Ariel changes jobs and her income decreases to $1,500 per month. Her consumption of snap peas at $10 per pint changes to 6 pints. Are snap peas a normal good or an inferior good for her? Explain.
c) Illustrate the change in Ariel's demand for snap peas on the same graph you drew for question a)