Panagiotis likes to drink beer every night in front of the TV. He is not interested in the size of the bottle, he is only interested in the total amount of beer he consumes. It can consume beer either from a half liter bottle or from a one liter bottle. The cost of a half liter bottle is 0.75 and the cost of a one liter bottle is 1. His income is 30.

a)Draw the income restriction curve in blue and draw various indifference curves in red.

b)At these prices what does the consumer choose?

c)If the price of a one liter bottle remains 1 and the price of a half liter bottle is 0.55, what does the consumer choose?

d)If the price of a one liter bottle remains 1 and the price of a half liter bottle is 0.40, what does the consumer choose?

e)If the price of a one liter bottle remains 1, how much must the price of a half liter bottle be in order to be indifferent between the two options.

f)Calculate the demand functions for one liter bottles,

1 (1, 2,.), And the half-liter bottles, 2 (1, 2, ).