The answer for 2(a) should be no, you can't tell whether it is normal or inferior. 2(b) should be yes it is inferior. Please explain why by drawing a diagram using income effect and substitution effect.

Question 2 (a) You are told that when the price of tea goes down, Ann drinks more tea. Based only on this information can you tell whether tea is a normal or inferior good for Ann? Carefully explain using appropriate diagram(s). [25] (b) You are told that when the price of coffee goes up, Ann buys more coffee. Based only on this information, can you tell whether coffee is a normal or inferior good for Ann? Carefully explain using appropriate diagram(s). [25]