1.) Suppose an individual with rational preference (i.e. downward sloping IC and convex preference) spends all of his/her income on toothpaste and allother goods ($). When the price of toothpaste doubles the individual continues to consume the same amount oftoothpaste.

i)Illustrate the before price change and after price change optimum points in a budget line -indifference map diagram (measure toothpaste on the horizontal axis and all other goods in $, on the verticalaxis.)

ii)In the same diagram show the income effect and substitution effect of the price change.