(b) Laertes could invest in a project that would leave him with my = 30 and my = 15. Besides investing in the project, he can still borrow at 200% interest or lend at 0% interest. Use red ink to draw the new budget set in the graph above. Would Laertes be better off or worse off by investing in this project given his possibilities for borrowing or lending? Or can't one tell without knowing something about his preferences? Explain. Better off. If he invests in the project, he can borrow or lend to get any bundle he could afford without investing. (c) Consider an alternative project that would leave Laertes with the endowment m, = 15, my = 30. Again suppose he can borrow and lend as above. But if he chooses this project, he can't do the first project. Use pencil or black ink to draw the budget set available to Laertes if he chooses this project. Is Laertes better off or worse off by choosing this project than if he didn't choose either project? Or can't one tell without knowing more about his preferences? Explain. Can't tell. He can afford some things he couldn't afford originally. But some things he could afford before, he can't afford if he invests in this project