3 Economics of Gift Giving [15 ptsl Imagine there are two goods in the economy, books and socks. The price of a book is $10, a pair of socks is $2 and you have an income of $20. a. [3 ptsl If you receive $20 for your birthday, show how this affects your optimal consumption bundle (assume both goods are normal). b. [10 ptsl What if you instead received 2 book (valued at $20) for your birthday? Does this necessarily put you at an optimal bundle? Explain using a diagram. c. 12 ptsl Based on your analysis, what's the most efficient gift? Explain. 5