Is this wrong and why? . Suppose that due to ination, the price of all goods goes up uniformly by 12%, but income stays the same. The consumption of some goods goes up, and of some goods goes down. Claim: \"The goods whose consumption increased are Giffen goods\". Is this wrong/ right and why? . A young family buys two categories of consumption goods: housing and other consumption goods. The indifference curves of this family are standard in every sense discussed on the lectures; in particular, they are smooth. Suppose that the price of a standard square meter is 2,000 and the family expects that this price will stay constant. The price of the other goods is one,1 and the lifetime income of the young family is 500,000. The family decides that the optimal size of the house is 100 square meters. The market is exible and the family can resale the house and purchase another one at no transaction costs. After the house is purchased, the market price of a standard square meter goes down to 1,000. The family is shocked, because their brand new house that they purchased for 200,000 has lost half of its value overnight. Claim: \"The family is worse off\". There is a sense in which this is a correct statement, but there is a sense in which this is incorrect. Explain the latter. . An old aristocrat and a young hip-hop superstar (both very rich) face the same market prices and choose to buy positive quantities of wine and caviar. Claim: \"The aristocrat and the hiphop star probably have different prefer ences and therefore they would not value bottles of wine in terms of jars of caviar in the same way.\" Is this wrong/right and why? . Claim: \"Since LED light bulbs use 10% of the electricity that is consumed by equivalent traditional bulbs, a wideSpread adoption of these light bulbs will lead to a drop in consumption of energy to 10% of the current use.\" Is this wrong / right and Why? (Before answering, nd out what Jevons paradox is. It is sometimes called rebound effect, take-back effect or backre effect.)