Answer the question below:

Lily allocates her dessert budget between two goods, cupcakes and candy. Draw the following on the same graph, please label to make clear which budget constraint is associated with each problem. 1.) Draw Lily's optimal bundle on a graph with cupcakes on the horizontal axis. 2.) Suppose now that cupcake is taxed, causing the price to increase by 20%. Illustrate Lily's new optimal bundle. 3.) Suppose instead that the cupcakes are rationed at a quantity less than Lily's desired quantity. Illustrate Lily's new optimal bundle