\fQ1 (3 points) Granny lives in the Woods and consumes only bread and fruits. One week she falls ill and has to ask her niece, Red, to buy her weekly food. Red lives in the City, where the price of fruit is $2 per kilogram and the price of bread is also $2 per loaf. Red knows that Granny's utility function is given by UU', b) = 111(f) + 2111(5) and that Granny has allocated $60 of her income for food each week. Heading to Granny's house in the Woods with the food bought from the City in her basket, Red unexpectedly meets the infamous trader B. B. Wolf, which offers to buy or sell food at a price of $6 per kilogram of fruits, and $3 per loaf of bread. Show graphically, in the same kind of diagram you used to answer Assignment 1, the income and substitution effect of Red' meeting with Wolf on Granny's consumption of bread. Make sure you properly label all the various lines/curves in your diagram