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NOT ASSIGNED FOR WINTER 2020 BECAUSE OF ALL THE DRAWING, BUT GO THROUGH IT! The diagram shows a consumer living on a xed income that

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NOT ASSIGNED FOR WINTER 2020 BECAUSE OF ALL THE DRAWING, BUT GO THROUGH IT! The diagram shows a consumer living on a xed income that she spends entirely on Food and Recreational Travel. (Assume her other needs, like clothing and shelter, are provided by her older sister.) Food prices double, resulting in an inward rotation of the budget line. The original and new equilibria are shown on the diagra m. The dashed line is parallel to the new budget line and tangent to the original indifference curve. (a) 0n the horizontal axis, show the income and substitution effects for food. (b) Based on the diagram, is recreational travel a normal good? Explain. (You can use the vertical axis to support your explanation if you like.) Recreational travel

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