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[10 marks]. Guy likes eggs on toasted bread, but he also likes omelettes, and is fine with eating bread on its own. His original optimal
[10 marks]. Guy likes eggs on toasted bread, but he also likes omelettes, and is fine with eating bread on its own. His original optimal bundle is 6 eggs and 10 slices of bread. The price of bread goes down, but Guy's budget and the price of eggs remain unchanged. Guy's new optimal bundle includes 8 slices of bread. Draw a graph to illustrate this, including a decomposition the price change into a substitution and income effect. Is egg an inferior good for Guy
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