1. Suppose that when Nathan had $100 to spend on food each week he purchased 5 cans of Spam, and after his weekly food budget increased to $120 he purchased 4 cans of Spam. a. What is Nathan's income elasticity of demand for Spam? b. Is Spam a normal good, an inferior good, or a luxury good? How can you tell? 2. Explain what is the income effect and what is the substitution effect of a price change for some good