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(A) Let pizza and calzones be perfect substitutes, and the substitution ratio is as indicated by the indifference curve. (Hint: Find the original optimal bundle

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(A) Let pizza and calzones be perfect substitutes, and the substitution ratio is as indicated by the indifference curve. (Hint: Find the original optimal bundle first and look for the substitution effect.) Pizza IC BCO BC2 Calzones(B) Suppose pizza and calzones are perfect complements. (Hint: Find the original optimal bundle first and look for the substitution effect.)\f(C) Let pizza and eslzones be imperfect substitutes. There are still two possibilities: pizza. and calzones are complements, or they can be substitutes. Does your analysis of substitution eects depend on whether the goods are substitutes or complements? Pizza. Calzones Analyze the substitution effect and income effect of pizza and calzones in the following 3 scenarios using diagrams and assuming a decrease in the price of calzones. The basic structures for each scenario have already been drawn for you

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