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(A) Use indifference curves and budget constraints to depict Marcos' behavior graphically by completing the following diagram, in which . Y is the quantity of

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(A) Use indifference curves and budget constraints to depict Marcos' behavior graphically by completing the following diagram, in which . Y is the quantity of a composite good, i.e., everything else . Py is the price of the composite good . A is Marcos' consumption bundle before the price change . Uo is the original indifference curve A Uo Salt(B) Is salt a normal or inferior good Marco-a? Why? (C) What is Marcos\" price elasticity of demand for salt? (D) Show in your graph the substitution and income effects of a change in the price of salt. Briefly discuss the sign and magnitude of income and substitution effects. (Big hint: why is total effect zero?)Marcos, whose indifference curves satisfy all the assumptions (A1 to A4) discussed in class, buys 16 ounces of salt each year. Even when the price of salt doubles, Marcos continues to purchase exactly 16 ounces

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