Suppose a person consumes only 2 goods, bagels (B) and vinyl records (V). The price of a bagel is $1, and the price of a vinyl records is $5. This person's income is $50. a. Draw this person's budget constraint (with B on the horizontal axis and V on the vertical axis). Draw an indifference curve that shows that the utility-maximizing choice for this consumer is 5 records and 25 bagels. (5 points) b. Suppose that the price of bagels rises to $2, and the price of vinyl records is unchanged. Take this person's consumption - 5 records and 25 bagels - as the standard consumption bundle. Calculating inflation as the change in the total cost of this standard consumption bundle, what is the amount of inflation, as a percentage of the original cost of the standard consumption bundle, due to this increase in the price of bagels? (5 points) c. Suppose that we adjust this person's income up by exactly the amount of inflation you calculated in part (b), so they have just enough money to buy 5 records and 25 bagels after the price increase. Draw a new budget constraint that reflects the new prices but allows them to still buy 5 records and 25 bagels. Do you think they will want to continue to buy these goods in exactly this combination? Or do you think they are likely to substitute out of one good and into the other? Explain. (5 points) d. Suppose we calculated the rate of inflation as the change in the amount of money needed to reach one's original level of utility, rather than the change in the amount of money needed to continue to buy one's original consumption bundle. Would the rate of inflation calculated this way be greater or less than the rate you calculated in part (b)? Explain. (You don't need to calculate a specific rate of inflation. You just need to indicate whether the rate, calculated this way, would be greater or less than the rate you calculated above, and explain why.)(5 points)