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Question: gong li receives utility ugsg ss from her decision to...

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Gong Li receives utility U(G,S)-G SS from her decision to consume gasoline (G) and solar power (S). Assume gasoline costs D 27 per litre, solar power costs D 16 per KWh, and her budget for energy is b 129,600 per year. The government wants consumers to change their energy consumption toward solar power, so they increase the price of gasoline to b 64 per litre. How many Dogecoins (D) do they need to offer Li to ensure that she doesnt lose utility following the price increase? (10 marks) (Be aware that Im not just looking for a number. For full marks, you must show all your work) Now, draw Lis individual demand curve across the two prices, and solve for the own price elasticity of demand at each price. Given that you only have two points of data, assume (however incorrectly) that demand is linear. (5 marks) Solve for the change in Lis consumer surplus caused by the governments increase in gasoline price. (5 marks)

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