Question: Please Answer As soon as possible 2. Let the two goods, x and y, be perfect substitutes for a consumer. Let P: = 4 and

Please Answer As soon as possible

2. Let the two goods, x and y, be perfect substitutes for a consumer. Let P: = 4 and Py = 5. (a) Let the price of good r changes to p = 3. Will the consumer buy more of a good x? What part of consumption is due to the income effect and what part is due to the substitution effect? Explain through graph. (b) Let the price of good y changes to pl = 3 while the price of good r stays pe = 4. What part of the change in demand for good y is due to income effect and what part is due to substitution effect. Explain through graph

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