Questions:

The demand for a Giffen good is always upwards slopping. True or False. Explain.

Assume the individual has the standard convex preferences and consumes two goods x and y. It is possible for y to be an inferior good and complement to x. True or False. Explain.

Chan always consumes 4 times y as x y=4x. The price of x is 3 times the price of y. and Chan has an endowment of 20 x and 45 y which she can trade at the going price. She has no other source of income. Chan's demand for x is 20 units. True or False. Explain.

Assume the market consists of two individuals, Chan and Wang. Chan's demand for bubble tea ispc=102q and Wang's demand is pw=5(q/2). Their joint demand when the price is $4 and $6 is 5 units and 2 units respectively. True or False. Explain