Kindly give the answer in 30 minutes

Business Economics Question

Paul loves hot drinks, and he has a part of his weekly budget earmarked for buying them. In the diagram below; you can find a budget line that represents how much tea and coffee Paul can afford within his budget for hot drinks and an example of an indifference curve. Tera II] It] GENE-En a}. Use the diagram to construct Paul's individual demand curve for coffee by completing the following steps: - Amend the diagram suitably to find Paul's optimal choice of hot drinks if the price of a cup of coffee increases to 1.5l], and the tea price re mains constant. - Repeat this step for a coffee price of 2 (again, the tea price remains co nstant]. - Draw a new diagram {'Diagram 2'] with Paul's individual demand curve for coffee. Clearly show the three points in your new diagram that correspond to Paul's optimal choices under each of the three price levels in the previous diagram. All relevant information MUST be clearlyr indicated on the diagrams, such as the intercepts of the budget line; the namings of the axes in the demandcurve 'Diagram 2'; and the coordinates of the three optimal choices in each diagram. h}. F'a uline's preferences are identical to Paul's. Add the market demand curve for the market for coffee to your 'Diagram 2' [part a}, under the assumption that Paul and Pauline are the only consumers in the market. Clearly indicate the relative quantities for the three prices for coffee considered above, 1,121.50: and 2