1.13. (This problem is challenging.) Consider a person deciding how much to consume and how much to save for retirement. This person has particular preferences:

Her lifetime utility depends on the lowest level of consumption during the two periods of her life. That is, Utility
Minimum {consumption when young, consumption when old}.

a. Draw this person’s indifference curves. (Hint:

Recall that indifference curves show the combinations of consumption in the two periods that yield the same level of utility.)

b. Draw the budget constraint and the optimum.

c. When the interest rate increases, does this person save more or less? Explain your answer using income and substitution effects.