Consider the figure below, which shows the budget constraint and the indifference curves of Meekay.She is in equilibrium with an income of 300, facing prices Px =4 and Py = 10.

a. How much X does Meekay consume?

b. If the price of X falls to 2.50, while income and the price of Y remains constant, how much X and Y will Meekay consume?

c. The total effect of the price change is to change consumption from point ____ to point _____

d. The income effect corresponds to the movement from point ___ to point ____, while the substitution effect corresponds to the movement from point ___ to point _____.

e. Is X a normal good or an inferior good?

f. Derive Meekay's demand (Marshallian) curve

Y 30 22.5 C E F X 30 35 43 75 90 120