Jose receives an allowance of P500 per week. He spends all his allowance on veggie sandwich and organic juice drink.

Problem 1:

Jose buys 18 veggie sandwiches and 1 organic juice drink. Draw an indifference curve representing Jose's choice, assuming that he has chosen the optimal combination.

Problem 2:

Suppose that the price of veggie sandwich rises to P50. Draw Jose's new budget constraint and his new optimal consumption of veggie sandwich and organic juice drink.