Problem
1. If indifference curves are bowed in toward the origin and the price of a good drops, can the substitution effect ever lead to less consumption of the good?
2. Suppose a consumer purchases only three goods, food, clothing, and shelter. Could all three goods be normal? Could all three goods be inferior? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.