Question 2 (a) You are told that when the price of tea goes down, Ann drinks more tea. Based only on this information can you tell whether tea is a normal or inferior good for Ann? Carefully explain using appropriate diagram(s). [25] (b) You are told that when the price of coffee goes up, Ann buys more coffee. Based only on this information, can you tell whether coffee is a normal or inferior good for Ann? Carefully explain using appropriate diagram(s). [25] Q2: Use the model of the consumer we learnt in class. Are the goods normal, inferior or is it ambiguous? Carefully explain using income and substitution effects. You can assume that Ann buys many goods, not just tea and coffee. Make sure all your answers are well explained: use diagrams/equations/drawings/examples where appropriate