Two consumers, Eric and Eli, have the same preferences for good X, a normal good. The only difference is that for Eli there would be no income effect if the price of good X changed. For Eric, there are both income and substitution effects for a price change. What does this tell you about Eric's and Eli's demand for good X? Explain.

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The Answer of Two consumers, Eric and Eli, have the same preferences for good X, a normal good. The only difference is that for Eli there would be no income effect if the price of good X changed. For Eric, there are both income and substitution effects for a price change. What does this tell you about Eric's and Eli's demand for good X? Explain.

Two Consumers, Eric and Eli, Have the Same Preferences for Good