III. Long Questions (There is 1 questions in this section of 30 points. Please give detailed but tidy answers to the questions.) 1. Suppose a consumer consumes two goods xg and x. Now the price of xz falls. Xo U U YIPL.1 (P. X PL PLII P2 (1) Discuss the difference between the Marshallian and Hicksian demands. Plot them in the lower panel of the figure above, and identify the substitution and income effects in it. (6 points) (2) Assume that a consumer has the following indirect utility function V(PG, P2, 1) = 0.61 P=0.7.P.C.3 Compute the expenditure function of the customer. (12 points) (3) What are the Hicksian demands for the two goods xc and xz of the customer? (12 points)