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Question 1. Alexander studies away from home. While at school1 he spends all his income on air travel and economics textbooks. As put-1. increases while pze remains unchanged, Alexander's price consumption path is horizontal (air travel is the xaxis good).1 a. Are textbooks complements or substitutes for air travel? b. How does Alexander's expenditure on air travel respond to changes in put-1.? Show that his demand for air travel is inversely proportional to pair. Question 2. Remember Alexander, the frequent traveller who likes economies textbooks? He has an income of $1000 to spend on air travel and economics textbooks. Currently. air travel costs $100 and economics textbooks $50. His supervisor is worried that Alexander does not spend enough time studying and travels too much. Therefore. he oifers to pay half of each textbook Alexander buys. a. Assume Alexander has smooth and convex indifference curves. Depict his initial and new consumption decisions. h. Decompose the change in textbook consumption into a substitution and an income effect, assuming both goods are normal goods. c. Decompose the change in textbook consumption into a substitution and an income effect, assuming that textbooks are inferior goods