Consider two of Gen Z's favourite brand of products, "PlayStation" (denote it as P) and "Nike" (denote this as N ), focusing on games from the former, and sneakers from the latter. Let a typical gen Z consumer have the following utility function U=xP41xN41 which describes her felicity from their consumption. Let the quantities she chooses to consume of the two goods be xP and xN. Let the prices of these two respective favourites be pP and pN. In making her choices, she is constrained by her income w. Answer the following questions. (a) Write down the equilibrium condition that describes the consumer's choice, and find the quantities xP and xN in terms of the prices, and income w. Make sure you show all your workings, and note the equilibrium condition that describes the choice. (10 Marks) (b) Consider the choice between "PlayStation" and some inferior good branded sneaker. Let the price of the inferior good sneaker's price be PA, and let its price (PA) decrease. Depict on a well labeled diagram the effect on the consumer's choice from such a price change, making sure to decompose the effect of the price decrease into its components, (i) substitution and (ii) income effect. Explain your answer. (10 Marks) Consider two of Gen Z's favourite brand of products, "PlayStation" (denote it as P) and "Nike" (denote this as N ), focusing on games from the former, and sneakers from the latter. Let a typical gen Z consumer have the following utility function U=xP41xN41 which describes her felicity from their consumption. Let the quantities she chooses to consume of the two goods be xP and xN. Let the prices of these two respective favourites be pP and pN. In making her choices, she is constrained by her income w. Answer the following questions. (a) Write down the equilibrium condition that describes the consumer's choice, and find the quantities xP and xN in terms of the prices, and income w. Make sure you show all your workings, and note the equilibrium condition that describes the choice. (10 Marks) (b) Consider the choice between "PlayStation" and some inferior good branded sneaker. Let the price of the inferior good sneaker's price be PA, and let its price (PA) decrease. Depict on a well labeled diagram the effect on the consumer's choice from such a price change, making sure to decompose the effect of the price decrease into its components, (i) substitution and (ii) income effect. Explain your answer. (10 Marks)