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32. Avi is only interested in consuming two goods, motorcycles (x-axis) and snowboards (y- axis). (a) Use indifference curves and budget constraints to show a
32. Avi is only interested in consuming two goods, motorcycles (x-axis) and snowboards (y- axis). (a) Use indifference curves and budget constraints to show a scenario where a decrease in the price of motorcycles leads to an increase in the consumption of both motorcycles and snowboards. Label everything, and show the effects of the substitution and income effects. (b) Does this imply that Avi considers motorcycles and snowboards to be complements or substitutes? Explain your answer. (This can be explained in 1 sentence. You do not need to write a whole paragraph.) (c) Does this imply that Avi considers snowboards to be an inferior good? Explain why or why not. (C!) Does Avi consider motorcycles to be an inferior good? Explain. (If your explanation is the same as for part (c) then just say \"same as for part (c)." If not the same, explain.)
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