Requirements: showing workings including curves if appropriate

. Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a _ change in rice consumption, and the income effect leads to a _ change in rice consumption. (a) positive, positive (b) positive, negative (c) negative, positive ((1) negative, negative . When a good is price inelastic, consumer expenditures on the good (a) increase when price increases. (b) decrease when price increases. (c) do not change when price increases. ((1 are not related to price elasticity of demand. . The following data pertain to products A and B, both of which are purchased by Madame X. Initially, the prices of the products and quantities consumed are: PA = $10, 623.; = 3, P3 = $10, Q3 2 7. Madame X has $100 to spend per time period. After a reduction in price of B, the prices and quantities consumed are: PA = $10, QA = 2.5, P3 = $5, Q3 2 15. Assume that Madame X maximizes utility under both price conditions above. Also, note that if after the price reduction enough income were taken away from Madame X to put her back on the original indifference curve, she would consume this combination of A and B: 62;, = 1.5, QB = 9 (a) Determine the change in consumption rate of good B due to (1) the substitution effect and (2) the income effect. (b) Determine if product B is a normal, inferior, or Giffen good. Explain. . Given the utility function U(X, Y) = X0'5Y0'5, the price of X and Y are denoted as PI and Py. Income is denoted as I. (a) Solve the Marshallian demand function of X and Y as functions of PI, By and I. (b) Solve the indirect utility function