1. [25 POINTS] John spends all his income of 100 dollars on two commodities: cheese and wine. The price of cheese is 2 dollars (per kilogram) and the price of wine is 5 dollars (per liter). (a) [4 POINTS] Describe John's budget set. (h) [4 POINTS] In a two-dimensional coordinate system in which wine is measured in the vertical axis and cheese on the horizontal axis, draw the budget line of this consumer and show his budget set. [c] [4 POINTS] Find the points where the budget line hits the axes. At each of these points write down the quantities of each good consumed. (d) [4 POINTS] What is the slope of the budget line? And what is the economic interpretation of this slope? [e] [4 POINTS] Because of a new import tariff, the price of wine per liter increases to 10 dollars. On a separate gaph, plot and show how the consumer's budget set is affected. (f) [5 POINTS] Because of a severe shortage in the supply due to a new quota on wine imports, a new rule is implemented by the only liquor store in town, allowing each consumer to purchase at most 5 liters of wine. Does this rule change the slope of the budget line?I Show on a separate graph how the new rule affects the consumer's budget set