Madam Lim consumes onlyr two goods: Kopi (good a) and Kuih (good 330.1 Madam Lin1 is a retiree and has no income. However, her dutiful daughter-in-law, Priscilla, gives her an allowance every week to spend on the two goods. Through out this exercise, put the amount of Kopi on the I-aads and the amount of Kuih on the yam's. (a) {Level A) In Week 1, the price of Kopi is $1 each while Kuih also costs $1 each. Madam Lin1 has an allowance of $35. Plot her budget line in a well-labeled dia- gram. (b) {Level A} In Week 2, the price of Kopi goes up to $2 each while the price of Kuih remains at $1 each. First suppose Madam Linl's income remains at $35. Plot her new budget line in the same diagram you have drawn for part (a). (c) {Level 13) Suppose Madam Lim chose a bundle that involves a strictly.r positive amount of Kopi in Week 1, do we know if she is better off or worse o" in Week 2 than in Week 1 under the conditions in part (b)? Why? (d) {Level A) Now suppose Madam Lim had chosen 12 Kopi and 24 Kuih in Week 1. Calculate the allowance Priscilla needs to give Madam Lim so that her Week 1 bundle is just affordable in Week 2. Plot Madam Lim's Week 2 budget line in the same diagram drawn earlier with this new allowance. Label clearly,r the bundle chosen in Week 1 in your diagram. {e} {Level B} Do we know if Madam Lin1 is better off or worse off in Week 2 with the new allowance than she was in Week 1 with the old allowance? W'hy? (f) {Level A) Suppose Madam Lim chose 3 Kopi and 32 Kuih in Week 2 after given the new allowance. Label her Week 2 bundle on the diagram you have drawn. Do her choices in Week 1 and Week 2 satisfy WARP? Explain. (g) (Level B) In Week 3, the price of Kopi goes back to $1 each while the price of Kuih goes up to $2 each. If Madam Lim's allowance remains at the Week 2 level, do we know if she is better off or worse off in Week 3 than in Week 2? Why or why not? (h) (Level A) Calculate the Week 3 allowance that Priscilla needs to give so that Madam Lim's Week 2 bundle (given in part (f) ) is just affordable under Week 3 prices. Draw the Week 3 budget line under this allowance. (i) (Level B) Do we know if Madam Lim is better off or worse off in Week 3 with the Week 3 allowance than she was in Week 2 with the Week 2 allowance? Why?(j) (Level B) Give an example of a Week 3 consumption bundle such that Madam Lim's Week 2 and Week 3 choices would violate WARP. (k) (Level C) Can you think of a scenario in which the cost of living adjustment would yield exactly the same budget line as the one before the price change