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2. Suppose Voodoo Donuts and Stumptown Coffee are perfect complements, consumed together one donu...

2. Suppose Voodoo Donuts and Stumptown Coffee are perfect complements, consumed together one donut to one cup of coffee. Suppose the price of a donut is $1 and the price of a cup of coffee is $3. Use both graphs and words to explain income and substitution effects when the price of coffee to rise to $4. (Hint: pay attention to the shape of the indifference curve for perfect complements.)

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Tc cosfee Consume pue prntton.ed one, unge copwes

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