1. The nominal price of a Dell Latitude laptop in 2995 was $1 ,199 and the |CPI that year was 195.3. The nominal price of a Dell Latitude laptop in 2919 was $7199 and the CPI that year was 255?. What is the real price of a Dell Latitude laptop in 2919 in terms of 2995 dollars? By what percentage has the real price changed from 2995 to 2919? Show your work. [2.5 pts.} 2. Discuss and show graphically using a supply and demand graph how each of the following events will affect the market for Gala apples in CT. Make sure to discuss how each of these events will affect the equilibrium price and quantity of Gala apples. {4 pts.) a) A decrease in the number of producers of Gala apples due to the CGVID pandemic. b) A decrease in the price of Honend'sp apples. a substitute in consumption. Ignore the event in part a}. c} Assume that the changes described in parts a} and b) occur simultaneously. What is the overall impact on the equilibrium price and the equilibrium quantity of Gala apples? You are not required to draw a graph in answering this question, but fully explain. You don't know which more shifts by more. 3. lDalculate the pnce elasticity of demand if you know that a 29% increase in the price of bananas decreases the quantity of bananas demanded by 15%. Is demand elastic. inelastic. or unit elastic? Explain your answer and show your work. {2.5 pts.) 4. Suppose the demand curve for a product is giyen by: Q = 199 4P + 2F's. where F' is the pnce of the product and F's is the price of a substitute good. The price of the substitute good is $4. a) Assume P = $2. What is the price elasticity of demand? Is it elastic or inelastic? Show your work and explain. {2.5 pts.) b) What is the crossprice elasticity of demand? Is the response elastic or inelastic? Show your work and explain. {2.5 pts.) 5. Tom loves rock music and dislikes countrv music. If he is given a country music CD as a gilt, he will threw it awav. He has no use of it. Draw a set of indifference curves that represent the individual's preferences for rock music and country music {show countryr music on the horizontal axis}. Indicate the direction in which the individual's satisfaction (or utility} is increasing. {2 pts.) 6. An individual consumes two goods, entertainment and food. Use the information in the table below to complete parts a and b. a) Illustrate the incomeconsumption curve for entertainment and food. Make sure to appropriately label vour graph. You will need to show the intercept values of each budget constraint and the list of the values of the optimal bundles {2.5 pts.) b) Illustrate the Engel curve for entertainment (1 .5 pts.}. Price of Price of Food Quantity of Quantity of Entertainment Entertainment Food $23 $1 $2 $1 $2 $1 $23 Bonus Question ['3 p15.) T. Suppose MU}: = EUXY and MUv = 15K? The price of good X is $1\". the price of good Y is $30, and the available income is $90G. Find the utilit_v maximizing bundle (X, Y}