2. Using an indifference curve/budget constraint diagram, illustrate the compensating and equivalent variation of a price increase of an inferior good. Using this diagram: a. Derive a Marshallian demand curve. b. Derive a compensated demand curve holding utility constant at its original level i.e. before the price increase (compensating variation). c. Derive a compensated demand curve holding utility constant at its new level i.e. after the price increase (equivalent variation). d. Compare and contrast the three monetary measures of welfare for a price decrease of an inferior good i.e. EV, CV and ACS