17. Suppose George consumes only two goods: Pepsi and pizza. The price of a pizza pie is $10 and a twelve-pack of Pepsi costs $4. George's total weekly income is $360.

a) Draw George's budget line. b) Show what happens to his budget line when the price of pizza decreases by 20%. c) Show what happens to George's budget line if he gets a raise and his income increases to $400 (assume (b) never happened). d) Pizza Hut is having a special deal called "buy nine, get one for free." If you buy 9 pizzas, you get an extra for free. You don't have to buy 9 pizzas all at the same time. You can take a card from Pizza Hut and ask them to punch a hole every time you buy a pizza; a card with 9 holes is worth a pizza. Show George's new budget line (assume (b) and (c) never happened). e) The government is concerned that Americans aren't eating enough pizza. A new study says that eating a minimum of 8 pizzas a week is good for health. In order to encourage this healthy minimum pizza consumption, the government decides to give a subsidy of $5 a pizza for pizzas consumed up to the minimum required for a healthy diet, after which consumers must pay the original market price. To finance this program, the government imposes a $40 income tax on each person. Show George's new budget line (assume (b)-(d) never happened).