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. Suppose that good 1 is normal and good 2 is inferior. Prove that the total effect on demand for good 1 of a
. Suppose that good 1 is normal and good 2 is inferior. Prove that the total effect on demand for good 1 of a marginal increase in the price of good 2 cannot exceed the total effect on demand for good 2 of a marginal increase in the price of good 1. That is, prove that x1 Jx2 where, for each i = 1,2, x; denotes the Marshallian demand for good i and p; denotes the price of good i.
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