1. Graphically show each of the following using indifference mapping: (11 points)
   1. Show using an indifference map, the effect on optimal choice of a decrease in the price of good x if good x is an elastic good.
   2. Assume the government wants to help new mothers keep their children healthy but can't decide on the best way to do so. One plan is to subsidize medical insurance by paying for 50 percent of all healthcare.The second plan is to provide new mothers with a stimulus check when a child is born. Assume the government is going to spend the same amount of money regardless of which plan they use. Show a situation where consumers are indifferent between either plan.
   3. Show the effect on optimal choice when incomes rise in society. (You can assume both x and y are normal goods)
   4. Assume the government wishes society to reduce their consumption of imported good x to purchase more of domestic good y, and thus has decided to increase the import tax on good x. Show with indifference mapping how this change affects the optimal quantities of good x and good y.