Brian has a so-called fruit budget, which he uses to buy only:' apricots and nectarines. Assume the price of apricots decreases Which of the following is an example of the substitution effect? O The decrease in the price of apricots makes apricots relatively less expensive than nectarines, so Brian will bug.r more apricots and fewer nectarines. O Because the price or apricots decreases, apricots become less desirable to Brian, who will therefore buy more nectarines and fewer apricots. O The decrease in the price of apricots increases Brian's real income, which enables Brian to buy more fruits in general. 4. Calculating the price elasticity of demand: A step-by-stepguide Suppose that during the past year, the price of a virtual reality headset fell from $4,650 to $4,430. During the same time period, consumer sales increased from 445,000 to 614,000 headsets. Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. Alter each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original Average Change Percentage Change amt-w Ii ll v m... W WI W W v Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same For the average price. Step 3: Calculate the change in quantity by suhtracting the original quantity from the new quantity. Do the same for the change in price. Step 4: Calculate the percentage change in quantity demanded by dividing the change in t'luantitji-r by the average quantity. Do the same to calculate the percentage change in price. Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign. Using the midpoint method, the elasticity of demand for headsets is about V