1. Consider a. consumer with Cobb-Douglas preferences over two goods, :0 and 3;. She spends half of her income on each good. The prices of the two goods are initially both $1, and her income is $100. (i) If the price of good x increases to $2, what is the impact on her demand for good 32? (ii) Decompose this change into the substitution effect, and the income effect. How big is each? (iii) Show that the substitution effect in isolation makes her better off than she is when prices are both $1