1.Draw Budget Constraints for the following:

a.One good is freee.g. free food

b.One good is rationede.g. food is rationed

c.Marginal bulk discounts for one good

d.Income doubles and all prices double

2.Show consumer optimum graphicallyinternal solution

3.Show consumer optimum for perfect 1:1 substitutes when

a.Their prices are equal

b.Their prices are different

c.What do the price consumption curves look like?