Question 4 (20) Be Neat and label ALL axes and intercepts. (i) Pascal spends $400 on widgets per semester. Widgets sell for $4 each. A tax on widgets increases the price by 50%. To offset the decrease in Pascal's utility (and his endless complaints), his friend Daniel offers him $200. Use budget constraints and indifference curves to answer the following: (a) Is Pascal better or worse off after the price increase and Daniel's offer? (6) (b) Does his consumption of widgets increase or decrease? (4) (ii) An individual consumes a positive amount of good X and good Y. Illustrate the substitution and income effects of a 25% increase in the price of good X if her cross price elasticity of demand for Y with respect to the price of X is zero