1. Suppose 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 Engel curve for Helen's consumption of crab meat. Is crab meat normal or inferior good for Helen?
2. Given the following data reply the following problems.
Corn bread (X2)
|
Dinner roll(X1)
|
Combinations
|
9
|
2
|
A
|
6
|
2.5
|
B
|
4
|
7
|
C
|
1
|
10
|
D
|
Graph indifference curve for possible combinations of dinner roll and corn bread indicated in able above. Remember to label all parts of graph. On the graph, label each combination by using letters indicated in column. Compute Marginal Rate of Substitution if you were to go from Combination A to Combination B.