a. Andre has a salary of $1000. He spends his entire budget on shoes and beers.

The cost for a pair of shoes is $15 and the cost for can of beer is $25.

iii. Suppose that the price of beers fell from $25 per beer to $15. Construct

Andre's new budget constraint. What is the difference between the new

and old budget constraints. (Please give detailed explanation on the difference between old and new constraint).