1. The following table lists three situations for an individual who consumes two goods X1 and X2. The table lists the prices of the goods P1 and P2, the quantities consumed of the goods, X1 and X2, the consumer's nominal income I, and his utility level, U. Situation P1 P2 X1 X2 I U l 1 1 50 40 90 10 2 1 1/2 48 84 90 15 3 1 1/2 25 70 60 10 (a) When the price of good 2 drops om $1 to $1/2, what is the change in the quantity demanded of X2 when nominal income is constant at $90? What part of this change is due to the substitution effect and what part is due to the income effect? Is X2 a normal good or is it an inferior good? (b) Fill in the blanks in the table and answer the questions in part (a) for this table: Situation P1 P2 X1 X2 I U l 1 l 50 _ 7O 10 2 1 1/2 52 7O 15 3 1 1/2 34 58 10