4. Derive separate Engel curves for products A and B from the following indifference curve analysis. Assume PA = $1.50 and PB = $2.25. Are these goods normal or inferior? Engel Curve for Product Engel Curve for Product B Quantity of A Quantity of B Income 30 G 7.5 5. The graph to the right is a market demand curve for steak. a. Clearly label the consumer surplus associated with a market price of $6 using the letters on the graph from the previous page b. Suppose the market price decreases to $4. Are consumers better off or worse off because of this decrease in market price? Using the letters on the previous graph, label the change in consumer surplus. C . Calculate the dollar amount of the consumer surplus in (a). Be careful of your units of measurement d. Calculate the dollar amount of the change in consumer surplus in (b). Be careful of your units of measurement. (million) 6. The graph to the right is a demand curve for shrimp from Galveston Bay. Suppose that the Environmental Protection Agency finds that there are toxic levels of a pesticide in Galveston Bay. Show graphically what happens to the demand curve for shrimp in light of this information. b. Is the situation described in (a) a change in quantity demanded or a change in demand? Circle your answer. 7. Consider the diagram to the right. a This diagram pertains to a(n) curve. b. Shrimp is a(n) _ good. Income $16 $10