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Part 2 (5 marks in total) Assume the following: Consider Jenny's demand function for apples: Qa = 10 Pa + 2Pp + Y Where, Qa

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Part 2 (5 marks in total) Assume the following: Consider Jenny's demand function for apples: Qa = 10 Pa + 2Pp + Y Where, Qa = quantity of apples Jenny demands Pa = price of apples that Jenny faces Pp = price of pears Y = Jenny's income Consider initially that Pp= $1 and Y0 = $10 Use the information above to answer the following questions: 3) Draw Jenny's demand function for apples (1 mark) b) Show how this demand function for apples changes if Pp increase to $2 but Y falls to $8 at the same time. Show workings (2 marks) c) Using the initial price of pears (Pp) of $1 and a price of apples (Pa) of $1, and applying the change in income from $10 to $8 are apples a normal or an inferior good for Jenny (use the midpoint formula)? Show workings (2 marks)

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