Part A Practical Questions Question 1 (5 marks) Suppose that the quantity of corn supplied depends on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable income {I}. The equations describing the supply and demand relationships are E = 2BR + lP and =4 - lP+ lI. a] Sketch a graph of demand and supply curves (1 marks) b) Sketch a graph that shows the e'ect of an increase in rainfall on the equilibrium piice and quantityr of corn. [2 marks} c) Sketch a graph of demand and supply curves that shows the effect of a decrease in disposable income on the equilibrium price and quantityr of corn. [2 marks} Question 2 (5 marks} Justin has the utility function U: E with the marginal utilities 31.4ar = y and My = x. The price of x is $2: the price of y is 32;, and his income is 413. 'When he maximizes utility subject to his budget constraint, he purchases 5 units of y. (a) What must be the price of y and the amount of x consL'Lmed'ir (1 marks). {'3} Prove that this allocation follows the eqnimarginal principle (2 marks)- (c) What would be the newr bundles of X, y if B; was $3 (2 marks)