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(Prove that Giffen goods are inferior, determine the nature of examples). Would like to check my answers, entire question posted below. 1 . Demand Functions

(Prove that Giffen goods are inferior, determine the nature of examples). Would like to check my answers, entire question posted below.

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1 . Demand Functions (a) Assume good 1 is a Giffen good, so that when p1 increases, demand changes by a positive amount. Show that good 1 must be an inferior good. (Hint: recall that total change (positive) 2 substitution effect + income effect). (b) Assume that demand for good 1 is given by 131 22. Determine Whether each of the following statements is true or false or uncertain (and explain). 1. Good 1 is a substitute for good 2. ii. Good 2 is a substitute for good 1. iii. Good 1 is ordinary. iv. Good 1 is a luxury good

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