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If x1 is a normal good and x2 is a neutral good, the slope of the indifference curve will be A. Positive B. Negative C. Zero (horizontal) D. Undefined (vertical) I have income of 126. If a value added tax of 0.6 is applied to all goods, it is the equivalent of a reduction of and so on.) in income. Round to two decimal places. (For this question, a tax of 0.1 means 10%, a tax of 0.2 means 20%, X₁ is an inferior good. If the price of X₁ increases, the substitution effect will cause the quanity of X₁ purchased to decrease. True False

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