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In a two-good world, a utility maximizer with strictly convex preferences has a perfectly inelastic demand curve for good X. Derive this demand curve in a simple indifference curve {demand curve diagram (one right under the other) with a stande linear budget constraint. What kind of good must X be? Why? i. X is a(n) good in this case, and the substitution effect of a change in the price of X the income effect of that price change. Normal ; outweighs Inferior ; outweighs Neuter ; equals Inferior ; equals 9-9 9'! ii. If the demand for X is indeed perfectly inelastic, any decrease in the price of X will a. Not change the consumer's total expenditure on good X. b. Increase the consumer's total expenditure on good Y. c. Both (a) and (b) are true. d. Neither (a) nor (b) is true