Sketch a person’s indifference map for two goods X and Y. Mark the optimum consumption point. Now illustrate the following (you might need to draw a separate diagram for each):

(a)  A rise in the price of good X, but no change in the price of good Y.

(b)  A shift in the person’s tastes from good Y to good X.

(c)  A fall in the person’s income and a fall in the price of good Y, with the result that the consumption of Y remains constant (but that of X falls).