Long Answer Questions Round all non-integer final answers to two decimal places (example: 0.01). 1. Cindy is an artist and purchases only 2 goods: acrylic (A) paints and paint brushes (B). Her utility function is U(A, B) = AB2, where MUA = B2 and MUs = 2AB. Cindy is initially maximizing her utility by purchasing 8 tubes of acrylic paint (which cost $24 for each tube) and 24 paint brushes (which costs $16 each). Unexpectedly, the price of paint brushes increases to $18. Compute the income and substitution effect for the two goods. Bundle A: A = 8, B = 24 Bundle B: A = 8.65, B = 23.08 Bundle C: A = 8, B = 21.33 SE for Acrylic Paints: 8.65 - 8 = 0.65 IE for Acrylic Paints: 8 - 8.65 = -0.65 SE for Paint Brushes: 23.08 - 24 = -0.92 IE for Paint Brushes: 21.33 - 23.08 = -1.75 .8 ASE = 0.65 , BSE= -0.92 AIE = -0.65 , BIE = -1.75 Lis considered a monopolist in