Consider an economy with two goods only. Use Slutsky decomposition for good 2 (Δx2 = Δx2(s) + Δx2(I) ) to prove that if the price of good 1 decreases and good 2 is normal, then under what condition is good 2 still a gross substitute for good 1? Under what condition is good 2 a gross complement for good 1?

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