2 Short Answer (6pts) Answer each question with a few sentences, numbers, or a picture. Each question is worth (3) points. 1. If demand for good I is given by :r[p, B) = g 2p, calculate the income and substitution effects of a price increase from p = 1 to p = 2 for someone with initial budget B = 12. 2. If you have utility from consumption MC) = a, then your expected utility from a gamble that gives consumption of 0 half the time and Y half the time is EU = %s/ + % = s/f. If this was a good representation of your preferences and you had $100 in your pocket, about how much would you be willing to pay to avoid a risk of losing it all half the time