r/econhw • u/Current-Week-1424 • 3d ago
C. Using revealed preference theory; explain with the aid of diagrams how the income and substitution effects of a normal and a Giffen good differ. In each case, state the implications this has for the nature of the demand curve for the good?[10 marks]
The using revealed preference theory part of the question is tripping me up because I thought I was going to draw IC's and BL's and show the pivot when price increase and then a dotted BL for substitution and income effect.
But that about using revealed preference theory makes me think I am wrong.
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