3. A consumer buys food and drink. As shown in the diagram below, the consumer experiences an increase in the price of food, shifting his budget line from BCo to BC]. The consumer's income is 200. The optimal bundle on each budget line is shown. (a) What is the price of food on BCO? (b) What is the price of food on B01? (c) The total effect of the increase in price is a decline of _____ units of food purchased. ((1) The substitution effect of the increase in price is a decline of _____ units of food purchased. (e) The income eect of the increase in food price is a decline of _____ units of food purchased. f Is food a. normal ood or an inferior ood? Which bud et lines did on compare? (g) Is food a Giffen good? Which budget lines did you compare? Drink 20 4O 45 $0 200 Figure 1: Question 3 . The diagram below shows a consumer's preferences over right shoes and left shoes. As shown in the diagram, the two are perfect complements. The consumer's income is $10. The budget constraint is initially BCO, where both prices are equal to $1. The diagram shows that the price of left shoes increases to $4, which shifts the budget constraint to BCl. (a) The total effect is a decline in __,_ left shoes purchased. (b) The substitution effect is a decline in ____ left shoes purchased. (c) The income effect is a decline in ____ left shoes purchased. Right Shoes 10 Io 5 11 2 BC1 BC2 BCo 2 2.5 10 Left Shoes