econ question

4) The following graph represents a Slutsky decomposition of a price change in one of the goods, either x1 or x2. Point A is the original optimal bundle and point B is the optimal bundle after the change in the price of one of the goods. A C B X1 a) How do we arrive at point C? What does point C represent? (6 points) b) What price changed (pi or pz) and in what direction (increase or decrease)? (7 points) c) Does the income effect depict that x2 is a normal, neutral, or inferior good? Briefly explain. (7 points)