Pedro, a retired economics professor, grows lemons and oranges in his backw yard.He consumes some of these fruits. and sells some in a local farmer's market. Pedro's preferences are represented by the following utility function U (51':T y) : min{3:, y}. In one season he can harvest 20 pounds of lemons and 60 pounds of oranges. In the local market. price of lemons is $4 per pounds and price of oranges is $2 per pound. Pedro receives $300 income from his retirement plan per season. Question 1 Part a Find Pedros optimal consumption bundle. Make sure to draw his budget con- straint and indifference curves to show his optimal choice. Question 1 Part b Suppose that the price of lemons rises to $5 per pound. What is Pedro's optimal consumption bundle now? Decompose the total change in demand due to a price change into a substitution effect. ordinary income effect and endowment income effect and graphically demonstrate it