H H EH 1. For each of the following statements, dene all of the underlined terms. Then, explain why the statement is true, false or uncertain. (a) If a consumer views two goods as perfect substitutes then their optimal choice will be a corner solution. (b) The substitution eect from a price increase states that the consumer will always choose a smaller amount of that good to consume. However, the income effect states that con- sumption can move in either direction. (c) Suppose Alf and Bo have convex indifference curves. Alf likes units of \"X" more than units of \"3"\" but Bo likes units of \"Y\" much more than units of "X.\" Then, in the optimum, Ali's marginal rate of substitution will be different from 30's even if they face the same prices. (d) All Giffen goods are normal goods, but not all normal goods are Gi'en goods. (e) Economists assume that preferences are ordinal. This implies that given two utility func- tions and one is a monotonic transformation of the other, then they represent the same preferences over bundles of goods