How would you answer parts 11c and 11d? thank you

| 0 (6) WhatsApp * [ EC201.pdf - - C Q 4https:/library.Ise.ac.uk/protected-exam/U/Economics/2007/EC201.pdf 3 Not syncing G Google @ YouTube M gmail 9anime @ Instagram @ WhatsApp ISf] moodle Th stat tables [ pps MangaOwl W Z-score W fgo f Facebook [ ReadLightNovel.org P Piazza # Library Genesis Far econ textbook () a prime 9anime w fgo fgona 5 of7 Q | Page view | A Read aloud | () Add text | V Draw Highlight Erase | 9 SECTION B: Answer three questions (18 marks each). 11 (a) (4 marks) Define the compensated demand function and the expenditure function. What is the relationship between the two functions? (b) ( 4 marks) Explain what is meant by the equivalent variation for an increase in the price of good 1. What is the relationship between the equivalent variation and the expenditure function? (c) (6 marks) What is a normal good? Assume that good 1 is a normal good and use a demand curve diagram to illustrate and explain the effects of an increase in the price of good 1 on compensated and uncompensated demand. Explain why one of these demand curves is flatter than the other. Show the change in consumer surplus and equivalent variation in the diagram. Explain why one is larger than the other. (d) (4 marks) You have a choice between using the change in consumer surplus or using the equivalent variation as measure of the impact of a price increase on a family. What reasons are there for choosing one measure rather than the other? 12 The Vickrey equivalence result states that with private values an English auction is equivalent to a second price sealed bid auction in the sense that given the bidders' values the same bidder wins and pays the same amount in W