Section A (Micro) Question A1 The Smith family divide their spending into "housing' and 'all other spending'. There is a sudden large drop in the price of housing (there is no change to the price of other goods; and no change in the budget for the Smiths). Using one more diagrams, explain the difference between the 'income effect' and 'substitution effect of this price change. How can we tell (from your diagram) if housing is a 'normal good'? (100 marks)