Prove that inferior goods goods with a negative income


1. Prove that inferior goods (goods with a negative income effect) have a backward bending income consumption curve.

2. Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve.

3. Comment about substitution effect and income effect when price of good one alone decreases if the goods are perfect substitutes.

4. Comment about substitution effect and income effect when price of good one alone decreases if the goods are perfect complements.

5. Prove that compensated demand curve is always negatively sloped.

6. Use weak Axiom of Revealed Preference to illustrate that substitution effect is always negative.

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Business Economics: Prove that inferior goods goods with a negative income
Reference No:- TGS01111400

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