ECON 302 HW1, Fall 2021 Page 8 3 Question 3 (28 points) Suppose that Graham enjoys painting green people. He has very particular preferences and must have exactly 3 gallons of yellow paint for each 2 gallons of blue paint. Let Y be the number of gallons of yellow paint and B be the number of gallons of blue paint. Also, let PB be the price of blue paint. Suppose Pete has $20 to spend on paint. Also, the price of yellow paint is Py = $1 per gallon. a) Graph Pete's price consumption curve for the prices PB = $1, and PB = 2, PB = $4. Please put the number of gallons of B on the vertical axis and the number of gallons of Y on the horizontal axis. Be sure to label your graph carefully and accurately.ECON 302 HW1, Fall 2021 Page 9 b) For which good can you draw Pete's demand curve? Why did you select that good? c) Draw the demand curve for the good identified in part b). d) Suppose now that Pete has $40 to spend on paint but all other details remain the same. Graph Pete's new demand curve on the same axes as in part c). e) Comment on what you notice about the demand curves on the graph above? Why do you see this relationship (hint: give a reason that you might have learned in ECON102)