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This question asks you to compare the Slutsky equations for the consumer's model with monetary income (CM) and for the consumer's model with endowments (CE).

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This question asks you to compare the Slutsky equations for the consumer's model with monetary income (CM) and for the consumer's model with endowments (CE). Consider the demand for good x and how this demand changes as the price of good x increases Oa. In both the CM and the CE models, if x is a normal good, then the demand for good x must decrease O b. Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net seller of good x before the change in price Oc. Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net buyer of good x before the change in price O d. Suppose x is a normal good. While in the CM model the demand for good x must increase, in the CE model the demand for good x may decrease if the consumer is a net buyer of good x before the change in price Oe. In both the CM and the CE models, if x is an inferior good, then the demand for good x must increase

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