Question: 8. For Norma, both nachos and salsa are normal goods. Although she likes consuming them together, they are not perfect complements (her indifference curves are
8. For Norma, both nachos and salsa are normal goods.
Although she likes consuming them together, they are not perfect complements (her indifference curves are convexshaped, not right angle–shaped). The price of nachos rises, while the price of salsa remains unchanged.
a. Can you determine definitively whether she consumes more or fewer nachos? Explain with a diagram, placing nachos on the horizontal axis and salsa on the vertical axis.
b. Can you determine definitively whether she consumes more or less salsa? Explain with a diagram, placing nachos on the horizontal axis and salsa on the vertical axis.
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