1. Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year. Plot the Engel curve for Helen\'s consumption of crab meat. Is crab meat a normal or inferior good for Helen?
2. Given the following data answer the following questions.
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Corn bread (X2)
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Dinner roll(X1)
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Combinations
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|
9
|
2
|
A
|
|
6
|
2.5
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B
|
|
4
|
7
|
C
|
|
1
|
10
|
D
|
Graph the indifference curve for the possible combinations of dinner roll and corn bread indicated in the table above. Remember to label all parts of the graph. On the graph, label each combination using the letters indicated in the column. Calculate the Marginal Rate of Substitution if you were to go from Combination A to Combination B.