For Norma, both nachos and salsa are normal goods.
Although she likes consuming them together, they are not
perfect complements (her indifference curves are convexshaped, not right angle–shaped). The price of nachos rises,
while the price of salsa remains unchanged.
a. Can you determine definitively whether she consumes more
or fewer nachos? Explain with a diagram, placing nachos
on the horizontal axis and salsa on the vertical axis.
b. Can you determine definitively whether she consumes more
or less salsa? Explain with a diagram, placing nachos on the
horizontal axis and salsa on the vertical axis.