6. The following figure shows a consumer's budget constraint and indifference curves. B1 is the initial budget curve and B2 is the new budget constraint. a. What happened to cause the budget constraint to change from B1 to B2? Explain your response. b. Mark the preferred bundle in time period 1 and time period 2. How does the amount of whiskey consumed differ between them? i. Mark the amount of whiskey consumed in period 1 as W, and in period 2 as W2. c. Demonstrate how much of that difference is due to the income effect and how much is due to the substitution effect. Explain what this means. Beer B2 B1 Whiskey7. Inthe article on Walmart, it was noted that the bonus structure for managers would change from being based on sales to profits. Suppose the following curve denotes the relationship between sales and profit. Profit Why might sales and profit not be perfectly aligned? And why might an increase in sales eventually be related to a decrease in profits? Draw and label what manager indifference curves look like if their bonus depends on sales. What is the optimal point? Draw and label what manager indifference curves look like if their bonus depends on profit. What is the optimal point? How do optimal sales and profit differ between the two scenarios? In the article on Walmart, it was noted that the average hourly wage was increasing from EIVATRGEIES -8 Draw a worker opportunity line (with daily income on vertical axis and daily leisure hours on horizontal axis) for a $17.50 wage. Draw a generic indifference curve and label the optimal bundle of labor and leisure. Suppose the hourly wage increases to $18. Draw the new worker opportunity line. What is the new optimal bundle? How does it compare? Why might you get this LIV | want to make sure you don't lose sight of how all this work is useful as a manager. The following are conceptual questions. -8 How does a manager use elasticities to make decisions? b. How does a manager use demand and supply curves to make decisions