Question 3. (It) points} The price of gasoline increases. Think about how this would affect consumption of gasoline if gasoline preferences are well behaved. 1'J'J'hat would he the substitution effect (explain what it means intuitively and whether it is likely to he positive or negative)? 1'J'J'hat do you think would he the income effect (explain what it means intuitively and whether it is likely to be positive or negative}? Draw a graph to illustrate your point