True or false? if the price consumption curve (as the price of x changes) is horizontal, then good y must be a normal good. (a) true (b) false 7. true or false? if the income consumption curve is upward sloping, then the price consumption curve( as the price of x changes) must be upward sloping too. (a) true (b) false 8. true or false? if the engel curve for good x is vertical, then the law of demand must hold for good x. (a) true (b) false

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.