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Please answer with clear explainations. 1. Suppose Steve consumes p bikes and e-bikes. The price increases...

Please answer with clear explainations.

1. Suppose Steve consumes p bikes and e-bikes. The price increases for

p bikes and Steve continues to purchase the same quantity as before the price increase.

Illustrate graphically the price-consumption curve and p bike demand curve on two

separate graphs given this information. Discuss the directions and magnitudes of the income

and substitution effects. Are p bikes normal or inferior for Steve? Explain.

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