Question: You are told that a typical consumer has a well-behaved preference structure for her consumption bundle which includes only two commodities, J and K. Further

You are told that a typical consumer has a well-behaved preference structure for her consumption bundle which includes only two commodities, J and K. Further assume that commodity J is normal and commodity K is giffen. By keeping commodity J on the x-axis and commodity K on the y-axis you are required to show the price decomposition for commodity K when $PK decreases exogenously relative to $PJ. [Note that marks will be allotted for a well-labelled and fully explained- diagram]

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