5 Jim buys only milk and biscuits.

a In year 1, Jim earns $140, milk costs $2 per litre, and biscu its cost $5 per dozen. Draw Jim's budget constra int.

b Now suppose that all prices increase by 25 per cent in year 2, and that Jim's salary increases by 25 per cent as well. Draw Jim's new budget constraint. How would Jim's optimum combination of milk and biscuits in year 2 compare with his optimum combination in year 1?