A consumer can spend money on salads (S) and other food consumption (F , p; = 1). The consumer's preferences can be described by the following utility function: U(S,F) =~/-F This implies that the Marginal Rate of Substitution of salads (S) for other food (F) is: b) d) M%_F MESS-F = MU; _ E The price for Salads is p; = 5 per portion and the available income is I = 240. Draw the budget line, labelling axes, intercepts, and slope. Please put salads (S) on the horizontal axis and other food (F) on the vertical axis. Calculate the optimal bundle. Show it on the graph you drew in part (a). Also draw the indifference curve that the optimal bundle lies on, labelling its slope in the optimum. Now suppose the government would like to increase salad consumption and decides to subsidize salads by $1.80 per portion. The new salad price is now p3 = 3.20 per portion. Calculate the new optimal bundle. Show it graphically, drawing both the new budget line and the indifference curve that the optimal bundle lies on. Label the slopes of the budget line and indifference curve. What is the cost of the subsidy to the government? (You can continue in the same graph or draw a new one.) Instead of a per unit subsidy, the government decides to provide a lump sum payment to the consumera \"Food Dividend\"equa.l to the total cost of the subsidy under (c). Calculate the new optimal bundle of the consumer. Show it graphically, drawing both the new budget line and the indifference curve that the optimal bundle lies on. Label the slopes of the budget line and indifference curve. Please draw a new graph! Does the consumer prefer the per unit subsidy or the lump sum payment? Which of the two policies is more effective at increasing salad consumption? Show your calculations