Q3. For each ofthe true/false claims below, indicate whether the claim is true or false [1 mark] and provide an explanation [4 marks]. [3} Suppose a consumer's budget is spent entirely on two goods: X and Y. Clam: an increase in the price of X will necessarily decrease the consumption ofboth x and Y, unless at least one of the goods is inferior. [5 marks] [b] Suppose a consumer's budget is spent entirely on two goods: Xand Y. Claim: if X is an inferior good, Y cannot also be an inferior good. [5 marks] [c] Claim: the income effect always works in the opposite direction as the substitution effect. [5 marks] [d] Claim: the Engel curve fora luxury good will be upward sloping and convex. [5 marks]