Problem
In the same two-commodity economy as in the previous exercise, keeping constant the price of the private good:
a. Give a graphical illustration of a preference relation generating a price elasticity of demand for public good that is less than one in absolute value.
b. Show that in this case the fraction of the budget spent on the public good increases as the (relative) price of public good increases.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.