Draw a diagram of an individual's consumption decision between xylophones (put it on the x-axis) and yo-yo's (put it on the y-axis).Now assume the price of Yo-yo decreases. Graphically decompose the total change in demand into the income and substitution effects such that yo-yo's are inferior but not a Giffen good.

Explain the movements between your initial consumption bundle (call it point a., the intermediate bundle (point b., and the final consumption bundle (point c..

b) Is the demand curve for yo-yo's downward-sloping?Why or why not?

c) As you've drawn it, are xylophones and yo-yos complements or substitutes?Why?