1.1: J. LIIULJJJULVLU 1. Budget lines and sets (30 pts) Always briey explain your answers! A consumer consumes two goods: wraps and tea, with respective quantities 1:1 and 51:2. Suppose the price of a wrap is $5 and the price of a cup of tea is $1. The consumer's weekly income is m : $70. (a) Write the budget constraint inequality and plot the budget line. Put tea on the horizontal axis and label your graph (intercepts, axes, etc.) clearly. (b) Suppose the consumer can go to two different restaurants which sell wraps and tea, M or N. At restaurant M , for every 5 wraps consumed in a week, the customer receives one free wrap. At restaurant N, for the rst ve teas consumed in a week, a customer receives two free teas (after that any additional tea is sold at the regular price). Plot the consumer's budget line if she goes to restaurant M. On the same graph, plot in different color her budget line if she went to N instead. (c) Plot an example indifference curve of a consumer who would optimally choose to go to restaurant M. Do the same for restaurant N (plot a different example indifference curve). (01) Suppose that now both promotions in (b) and (c) are over but the consumer decided to never consume more than 1 wrap per day (i.e., a maximum total of 7 wraps for the week). Draw the consumer's budget line with this condition imposed