Question: Assume the following: Consider John's demand function for bananas: Qa = 10 - Pa + 2Pp + Y Where, Qa = quantity of bananas John

Assume the following: Consider John's demand function for bananas: Qa = 10 - Pa + 2Pp + Y

Where, Qa = quantity of bananas John demands

Pa = price of banana that John faces

Pp = price of pizza

Y = Jenny's income

Consider initially that Pp= $1 and Y₀ = $10 Use the information above to answer the following questions:

c) Using the initial price of pizza (Pp) of $1 and a price of bananas (Pa) of $1, and applying the change in income from $10 to $8 - are bananas a normal or an inferior good for John (use the midpoint formula)? Show workings (2 marks)

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