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friends ,
in dse 2009,question 43....
we have the situation M=100,pa=10,pb=20.......bundle chosen is (4,3)
now when M=100,pa=20,pb=20.......bundle chosen is (5,0)
inference:since as pa rises quantity of a rises so a is a giffen good in relevant price range.....it follows that it is an inferior good as well.....
i dont understand the case of complements,,,,,as far as i know for complements we have dx/dp <0...as price of one gud rises ,quantity of its complement falls ...this is satisfied in this question but problem is quantity of b falls to zero which in my view then shudnt be a complement coz being complementry means a nd b have to be consumed together.....NOT THAT QTY OF ONE GOOD FALLS TO 0
answer key says its just giffen and inferior to which i completely agree......
again in dse 2011,exactly same question came with options:
a.a is inferior
b.b is complement of a
c.a is giffen
d,all of the above
in my view answer shud be c.a is giffen coz it includes the case of option a .....but key says its d)all of above.....same question but answers are different...
:((((((((((
.PLS CLARIFY.
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