Question: Please explain to me step by step. QUESTION 15 Suppose that price for Compact Disks [C115] is $15 each. Suppose the price for downloading tracks

Please explain to me step by step.

Please explain to me step by step. QUESTION 15 Suppose that price

QUESTION 15 Suppose that price for Compact Disks [C115] is $15 each. Suppose the price for downloading tracks of music legally is $1 for each song. Suppose Sophia has $30 to spend each month on music. 1. Draw the budget constraint on a graph with CDs on the horizontal axis. [1 points) 2. Suppose the price of CDs falls to $10. Draw the new budget line. [1 point} 3. Show using indifference curves the beginning and ending utility maximizing choices and the substitution and income effect given that CDs are inferior but not Gi'en good. Label the substitution effect SE and the income effect IE on the graph. (4 points}

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