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1) suppose a consumer consumes beer and wine. the price for beer increases and the consumer...

1) suppose a consumer consumes beer and wine. the price for beer increases and the consumer contiunes to buy the same quantity of beer as before an increase in price.
show on graph the price consumption curve and beer demand curve on two saperate graphs. discuss the direction of the income and substitute effects. is beer normal or inferior, explain

2) John notices that if he hires additional workers then he will be able to increase production by 12 per day. daily salary he will pay the workers is $100. how much is the cost for an additional good ? describe the relationship between marginal product and marginal cost curve
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