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)X and Y arecomplements, and both arenormalgoods.Suppose theprice of X rises.Complete the income and substitution effects table.Explain the directionof the income and substitution effects, andexplain
)X and Y arecomplements, and both arenormalgoods.Suppose theprice of X rises.Complete theincome and substitution effectstable.Explain the directionof the income and substitution effects, andexplain how these effects interactto determine thefinal changesin the consumption of X and Y.Remember the first sentence when thinking about final changes.
Please format your "table" like this (I'm going for easy text entry):
Sub:X up, Y up
Inc:X up, Y up
Tot:X up, Y up
Sub Effects:blah blah
Income:Yadda Yadda
Total:Therefore....
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