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A)Draw a diagram of an individual's consumption decision between xylophones (put it on the x-axis)and yo-yo's (put it on the y-axis).Now assume the price of Yo-yo decreases.Graphically decompose the total change in demand into the income and substitution effects such that yo-yo's are inferior but not a Giffen good.
Explain the movements between your initial consumption bundle (call it point
A),the intermediate bundle (point
B),and the final consumption bundle (point
C).