1. (a) How is a "buy one get one free" deal different from a "50% off sale"?

(b) Which deal would a consumer prefer? Please explain.

(c) Which deal would a retailer prefer? Please explain.

2. (a) Draw the indifference curve for a consumer for two goods X and Y, assuming the consumer does not get any utility, positive or negative, from good X.

(b) Would such a consumer move to a higher indifference curve with a "buy one, get one free" deal on good X? Please explain. You do not have to draw this on the graph, you just have to give an explanation.