3. Suppose Peter have $500,000 to spend on a house and "other goods" (denominated in dollars). The price of 1 square foot of housing is $200, and Peter chooses to purchase optimally sized house at 1,250 square feet. Assume throughout that Peter spends money on housing solely for its consumption value (and not as part of his investment strategy). a) On a graph with "square feet of housing" on the horizontal axis and "other goods" on the vertical, illustrate Peter's budget constraint and Peter's optimal bundle A. b) After Peter bought the house, the price of housing falls to $156.25 per square foot. Given that Peter can sell his house from bundle A if he wants to, is Peter better or worse off