Question 11 Sam views a packet of cheese (good X) and a bottle of wine (good Y) as perfect complements. Each month Sam sets aside E80 to spend on cheese and wine. The prices of the two goods are Px = Py = $10. (a) Sketch some of Sam's indifference curves in a diagram and explain their shape. [5 marks] (b) Add Sam's budget line to your diagram. Find the amount of cheese and wine Sam chooses to consume and add the optimal bundle to your diagram. [10 marks] (c) Sam is consuming at his optimal bundle when he receives an unexpected gift of two bottles of wine. Will Sam benefit from receiving this gift? Explain your answer. [5 marks] (d) Sam is consuming as in (b) when the price of cheese falls (the price of a bottle of wine is unchanged). Illustrate in a diagram how the fall in the price of cheese changes Sam's optimal bundle and decompose the effect of the price fall into a substitution and an income effect, explaining your reasoning. [10 marks)