From the graph given,

a) locate two points on an individual demand curve that you sketch directly below the graph presented.

b) what is the point price elasticity of demand at price 3?

c) Is this commodity a normal good, inferior, or Giffin good by all? Show how you know by additional sketching on the graph (Hint: by finding substitution effect and income effect you shift the budget constrain parallel to the right until it attaches to the higher indifference curve, and you find ICC curve).

\f