Consider a consumer who consumes either good 1 with price For or good 2' with price pg. Her preferences are convex and monotonic. The consumer has an income of M. a. Draw the budget line together with the optimal consumption bundle of this consumer. b. Suppose the government wants to support this consumer. There are two policies that the government can implement. Suppose rst that govemmeut offers a per unit subsidy of s on each unit of good 3:, effectively malring the unit price of good X, 11:75. Draw the new budget line and the new optimal bundle on the same graph as paJt a. c. Instead of {b}, suppose the government offers an equivalent income subsidy [i-e., \"equivalent\" means that if the subsidy in part b malres the new optimal bundle 3 dollars cheaper for the consumer: then the government now increases her income by 5}. Draw the new budget line. d. Which one is better for the consumer? Why