8. Suppose U (x1, x2) has vertically parallel indifference curves if you put x1 on the horizontal axis. a. First, graph the indifference curves as specified. Then show graphically what the income effect is for good 1. b. What does this imply about the demand for good 2? What kind of good might this be? c. Derive the Marshallian (ordinary) and compensated demand curves for good 1. [Hint: if it helps, use some sample values of M, P1 and P2 to get you started.] BONUS. This question is worth an additional 5 points. Quite often, whenever there is a natural disaster, we hear statements about how much the disaster cost. Suppose there was a large comet heading straight for earth. Does it literally make sense to ask the question: "What is the cost of a comet hitting the earth"? Why or why not