Clancy buys only milk and cookies.

In year 1, Clancy earns $90, milk costs $2 per quart, and cookies cost $3 per dozen.

Use the green line (triangle symbol) to draw Clancy's budget constraint on the following graph.

Now suppose that all prices increase by 10 percent in year 2 and that Clancy's salary increases by 10 percent as well.

Use the blue line (circle symbol) to draw Clancy's new budget constraint on the preceding graph.

True or False: Clancy will consume the same amount of milk and cookies in year 2 as in year 1.

True

False