A quart of milk (x1) costs $2. Eggs (x2) cost $1 each.

A. Draw the budget constraint and some indifference curves for a consumer withm= $20 andu=min{x1, x2}.

B. How many eggs and quarts of milk does he consume? C. What ifu=min{2x1, x2}, what is his optimal bundle?

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D. The grocery store has a promotion. If you buy 10 eggs at regular price ($1), all eggs after that are half price. Draw the consumers new budget constraint.

E. What is the consumer's new optimal bundle of eggs and milk?