Assignment I Template: Impact of Economics on Daily Living Scenario:A friend who knows that you are learning problem solving skills and economics has come to you for advice They have brought their family's budget from last year, as well as their current budget for this year. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. Your friend's family's income stayed the same, but because of these economic changes, they had to make changes to their yearly budget. Budget 1 on the left shows how their family used to spend their income of $25,000. Budget 2 on the right reflects changes your friend made to the family's budget based on economic changes. Your friend's family is unhappy about the lifestyle changes that your friend has chosen. They are having a difficult time explaining the reason for some of the decisions they have bad to made about family finances. Since they know that you are studying personal finance, they have asked you to belp them come up with a way to explain to their family what has happened to their spending. Budget 1 Budget 2 Dollars Percent Dollars Percent Income $ 25,000 100- Income $ 25,000 100% Expenditures Expenditures Rent $ 7.500 30%% Rent $ 8.250 33% Imported Food $ 1 250 Imported Food 750 Food from the U.S. |$ 2 500 1025 Food from the U.S. $ 3,000 12% Utilities 750 Utilities 500 Transportation S 750 Transportation S 500 Education S 2-500 106 Education $ 2.500 106 Family Care $ 2 500 10% Family Care $ 2,500 10% Savings $ 7,250 29% Savings $ 7,000 28% Total $ 25,000 100%% Total $ 25,000 100%% Answer the following questions based on the scenario and Budget 1 and 1: 1. In the first four weeks of this class you have learned about several economic concepts and how they impact daily living. Choose one economic concept from this list and explain how it is relevant to your fivends' budget situation: Type here to search A H 1205 AM 4/20/2071 Answer the following questions based on the scenario and Budget 1 and 2