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Jill consumes Ramen noodles and all else. Assume Jill considers Ramen noodles an inferior good. Using...

  1. Jill consumes Ramen noodles and all else. Assume Jill considers Ramen noodles an inferior good.
    1. Using the utility-maximization model, graphically show the effect of an income increase on Jill’s consumption of Ramen noodles.

  1. On a separate graph from (a), graphically show the effect of two price increases on Jill’s consumption of Ramen noodles.

  1. Based on (b), derive Jill’s demand for Ramen noodles using the supply-and-demand model.

  1. Draw an Engel curve for a good that is inferior at low levels of income and normal at high levels of income.
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