Answer the question below:

1. Tyrone is indifferent between 4 cookies and 2 glasses of milk, 5 cookies and 2 glasses of milk and 4 cookies and 3 glasses of milk. What can we deduct about Tyrone's preferences for milk and cookies? (Hint: sketch the indifference curve.) 2. Note that point A was the utility maximization point when the price of food was $5.00 and point to B is the utility maximization point when the price of food changed to $1.00. Clotl'ilvu', What is the value of the substitution effect in the gure above when prices for food decrease? Label this effect on the graph. Judging by the above graph, is clothing a substitute or a complement to food? How do you know? Draw this individual's demand curve for food. Label the two points that you are certain of based on the information given and the above graph