In Spring 2020 Gary consumed two goods: packs of toilet paper (with quantity denoted by t) and dollars spent on everything else' (quantity denoted by e). (a) Suppose a pack of toilet paper costs $6 and Gary's income is m = 560, Write down Gary's budget constraint and plot his budget set and budget line (put on the horizontal axis, as good 1). Label the axes, intercepts and everything else carefully. Find the slope of the budget line. The following applies for parts (b)-(d). Now suppose that there are only two stores Gary could go to (Costco and Save on Foods. Save on Foods allows each customer to purchase maximum 2 packs of toilet paper, at S6 each. Costco sells packs of toilet paper for $5 each but only if a customer spends at least $30 on everything else (no tolled paper can be bought otherwise). (5) Plot Gary's budget line if he goes to Costco. On the same graph, plot his budget line it he goes to Save on Foods instead Outre te) Can Gary buy the bundle 15:30) (5 toilet paper packs and $30 spent on everything else) from Save on Foods? How about from Costco? Explain why or why not. (d) Are there valid preferences for Gary (plot an example indifference curve) so that he would rather go to Save on Foods instead of Costco? Explain why or why not Gary's income is still $60. 1 B I U !!! De . 1 & 7 4 5 6 8 9