A college student has two options for meals: eating at the dining hall for $5 per meal, or eating a package of Cup 0' Soup for $2.50 per meal. Her weekly food budget is $100. Assume that she spends equal amounts on both goods. On the following graph, use the green line (triangle symbol) to draw the college student's budget constraint. Then use the black point (plus symbol) to indicate the initial optimum in this case. Packages of Cup 0' Soup 45 35 25 20 15 10 a 10 12 Meals at Dining Hall 14 16 18 20 + Initial Budget Constraint --I- I Initial Optimum (A) 0 New Budget Constraint at New Optimum (B) Suppose the price of a Cup 0' Soup now falls to $2. Assume that the student now spends 70 percent of her income on dining hall meals. On the preceding graph, use the blue line (circle symbol) to draw the college student's new budget constraint. Then use the grey point (star symbol) to indicate the new optimum in this case. As a result of this price change, the quantity of Cup 0' Soup packages consumed V . This means that Cup 0' Soup must be 7 good, and the income effect V the substitution effect. On the following graph, use the blue line (circle symbol) to draw the student's demand for Cup 0' Soup by plotting the optimum information from points A and B. \fTrue or False: Cup 0' Soup is not a Giffen good. 0 True 0 False