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a, Sketch the effect of technological innovation on Jill's optimal consumption of camera and books, assume the income effect for books are outweighed by the
a, Sketch the effect of technological innovation on Jill's optimal consumption of camera and books, assume the income effect for books are outweighed by the substitution effect. Label the indifference curves, budget constraints, optimal consumption bundles etc.
b, Does the decrease in the price of cameras always give a clear prediction of Jill's consumption of books? Explain in a table or words, the substitution and income effects.
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Just need to draw a sketch. This is not a numerical answer. If you can't answer, that's okay because I am just hoping to check what I have is correct.
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