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Question 4 a. Suppose that goods 1 and 2 are perfect complements and that a consumer purchases 4 units of good 1. What is the
Question 4 a. Suppose that goods 1 and 2 are perfect complements and that a consumer purchases 4 units of good 1. What is the demand function for good2? 1.5 marks b. Suppose that the price of good 1 is 400 and the price of good 2 is 600 what is the consumer income? 1.5 marks c. Suppose an income tax of t is then introduced, what is the demand function for good 1 income? 1 marks d. Good 2 is now viewed as a bad good, what is the demand function for good 1? 1 mark
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