Expenditure by South Africans on health care has seen a dramatic increase over the last couple of years. Many have claimed that the large increase in spending has primarily been a result of a very inefficient system characterised with high prices for health care services. As a result, a significant amount of South Africans' budgets has been directed towards these goods compared to the money spent on recreational activities. 4.1 4.2 Suppose, due to a strong performance of the economy over the third quarter, average income levels of South Africans increase. With health care (HC) on the y-axis and the consumption of (3) recreational activities (RA) on the x-axis, illustrate the income-consumption curve if recreational activities are considered an inferior product. In an effort to increase the consumption of recreational activities the Department of Tourism announces a 5% decline on the price of all local holiday trips. Illustrate the income and (2) substitution effects if recreational activities are in fact considered to be Giffen goods.