Problem
Reggie consumes only two goods: food and shelter. On a graph with shelter on the horizontal axis and food on the vertical axis, his price consumption curve for shelter is a vertical line. Draw a pair of budget lines and indifference curves that are consistent with this description of his preferences. What must always be true about Reggie's income and substitution effects as the result of a change in the price of shelter?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.