With good Y on the y-axis and coffee on the x-axis,
(a) Using indifference curves and budget lines, illustrate three
utility-maximizing equilibrium points for Maxwell whose income
elasticity of demand for coffee is zero.
(b) Is good Y normal or inferior to Maxwell?
(c) Explain whether you agree or disagree with the following
statement: At each of the three equilibrium points in part (a),
MUx/Px = MUy/Py and the marginal utility of money (l) is
constant.