1. This question asks you to specify algrebraically and to graph some two good budget sets dened by particular prices and levels of income. Make sure to label axes clearly. In addition to dening the budget set, in each case write the equation for the budget line and mark it on the corresponding graph ( ( a) The rst case involves p1 = 7, p2 = 3.5, and m = 10.5. b) (c) The third case involves p1 = 10, p2 = 5, and m = 15. (d) Not all of these budget sets are different. Why is that? The second case involves p1 : 8, p2 : 2, and m : 12. 2. Consider a world with one and only one type of food, called good 1, and a second nonfood good called good 2. In an effort to prevent malnourishment, the government subsidizes food consumption up to a lower bound 33;; > 0: this is a per unit subsidy that reduces the unit price of food by 50% up to this amount. In an effort to reduce demand, the government also taxes food consumption above an upper bound 33;; > 391,: this is a per unit tax that increases the unit price of additional food over and above this amount by 50%. Graph the budget set for the special case in which p1 = p2 = 1, m = 10, 33;, = 2, and 33;; = 5 and explain your derivation (much as I did in class)