Question 1 (25 points) Rohit's preferences satisfy all standard assumptions. He's at the fruit store figuring out his purchase of apples and bananas. He has 100 dollars. Both apples and bananas are very cheap, at $1 per pound. Suppose the price of bananas increases to $2 dollars. The income effect on the demand for bananas must be positive. nzj' True uzj' False Question 2 (25 points) Refer again to question 1. The substitution effect on the demand for bananas must be negative. True False Question 3 (25 points) Refer again to question 1. Suppose that the price of apples and bananas is $1 per pound, but Rohit's budget doubles to $200. Compared with the case where his budget was $100, the ratio of the quantities of apples and bananas demanded by Rohit .;:' :3. is the same .;:' '3. must be greater lg: :3 must be lower .;:' j may be greater, lower, or unchanged. We don't have enough information to make a call Question 4 (25 points) If the income elasticity of demand for good X is greater than one. then X is