2.Eric purchases Food (F) and clothing (C) and has the utility function U(F, C) = FC. Suppose that he has an income of $72 per week and that the price of clothing is P_c = $1 per unit. Suppose that the price of food is initially P_f1 = $9 per unit and that the price subsequently falls to P_f2 = $4 per unit. (MU_F = C and MU_C = F)

a)Find the numerical values of the substitution and income effects on food consumption and graph the results. (Properly annotate all values for F and C as well as utility on the graph with food on the horizontal axis and clothing on the vertical axis).

b)Calculate the compensation variation associated with the decrease in the price of F from $9 to $4.

c)Calculate the equivalent variation associated with the decrease in the price of F from $9 to $4.