Answer the following questions on separate sheets of paper. Be sure to show your work and to clearly label your graphs(you must use a straight edge in to construction of all graphs). Note: You are welcome to work together on these problems. However, you must show, and turn in, your own work. Also, I highly recommend attempting the problems on your own prior to seeking assistance. 1. Suppose that a group of Sonoma County buy local advocates propose a complementary currency that can only be used to purchase goods sold by locally based vendors. Assume that the complementary buy local currency is exchanged on a dollar for dollar basis with the official U.S. currency. a) Suppose that everyone in Sonoma County is required to replace a fixed amount of their income with the buy local currency. How will the buy local currency affect the typical consumers budget constraint? Be sure to clearly label and explain your graph and all variables. b) Use the budget constraint-indifference curve paradigm to analyze the effect on optimal consumption choices of someone with a relative preference for local goods. Explain fully and show graphically. c) Use the budget constraint-indifference curve paradigm to analyze the effect on optimal consumption choices of someone with a relative preference for non-local goods. Explain fully and show graphically. d) Who are the winners and losers under this mandatory program? Specifically, what consumers are made better off and worse off? Are local vendors made better off? Explain fully. Answer the following questions on separate sheets of paper. Be sure to show your work and to clearly label your graphs(you must use a straight edge in to construction of all graphs). Note: You are welcome to work together on these problems. However, you must show, and turn in, your own work. Also, I highly recommend attempting the problems on your own prior to seeking assistance. 1. Suppose that a group of Sonoma County buy local advocates propose a complementary currency that can only be used to purchase goods sold by locally based vendors. Assume that the complementary buy local currency is exchanged on a dollar for dollar basis with the official U.S. currency. a) Suppose that everyone in Sonoma County is required to replace a fixed amount of their income with the buy local currency. How will the buy local currency affect the typical consumers budget constraint? Be sure to clearly label and explain your graph and all variables. b) Use the budget constraint-indifference curve paradigm to analyze the effect on optimal consumption choices of someone with a relative preference for local goods. Explain fully and show graphically. c) Use the budget constraint-indifference curve paradigm to analyze the effect on optimal consumption choices of someone with a relative preference for non-local goods. Explain fully and show graphically. d) Who are the winners and losers under this mandatory program? Specifically, what consumers are made better off and worse off? Are local vendors made better off? Explain fully