Question Price of good X is $10 each and price of good Y is $4 each Panel (a) in the figure shows a new budget line BC2 when the price of good X falls to $5 each Your indifference curve U1 is tangent to BC1 at point A, and tangent to at point The new budget lineBC2 is parallel to the dotted budget line Draw large and clear figures for each case e) Notice that point B in panel (b) is carefully chosen on the new budget line BC2 so that good X can be proven to be a normal good that is a necessity Prove that Y is a necessity good f) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be a normal good that is a luxury Prove that good X in this case is a luxury good g) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be a good that is inferior but not a Giffen Explain how the good X in this case is an inferior good but not a Giffen h) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be an inferior good that is a Giffen Explain how the good X in this case is a Giffen good i) What is the range for the quantity of good X at the tangency of the new indifference curve and the new budget line for the good X to be considered i) a luxury, ii) a necessity, iii) a Giffen, iv) a non Giffen inferior good

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Question: Price of good X is $10 each and price of good Y is $4 each. Panel (a) in the figure shows a new budget

Question: Price of good X is $10 each and price of good Y is $4 each. Panel (a) in the figure shows a new budget line BC2 when the price of good X falls to $5 each. Your indifference curve U1 is tangent to BC1 at point A, and tangent to at point . The new budget lineBC2 is parallel to the dotted budget line . Draw large and clear figures for each case-

e) Notice that point B in panel (b) is carefully chosen on the new budget line BC2 so that good X can be proven to be a normal good that is a necessity. Prove that Y is a necessity good.
f) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be a normal good that is a luxury. Prove that good X in this case is a luxury good.
g) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be a good that is inferior but not a Giffen. Explain how the good X in this case is an inferior good but not a Giffen.
h) Reproduce the figure in panel (a) and draw therein a new indifference curve U2tangent to the new budget line BC2 so that good X can be shown to be an inferior good that is a Giffen. Explain how the good X in this case is a Giffen good.
i) What is the range for the quantity of good X at the tangency of the new indifference curve and the new budget line for the good X to be considered i) a luxury, ii) a necessity, iii) a Giffen, iv) a non-Giffen inferior good?