d. For each of Goods X and Y, explain whether the income
effect is working in the same direction or the opposite
direction as the substitution effect.
e. For Good Y, how large would the income effect need to
be for this to be a Giffen good? What would the demand
curve look like in this case?
17. Rupert really loves pizza, but he eventually tires of it. The table
below shows the highest price that Rupert is willing to pay for
each successive pizza per week.
Pizza Rupert’s Willingness to PayFirst $18Second $16Third $13Fourth $9Fifth $4Sixth $0