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please use provided graph. A college student has two options for meals: eating at the dining hall for $5 per meal, or eating a package

please use provided graph.

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A college student has two options for meals: eating at the dining hall for $5 per meal, or eating a package of Cup 0' Soup for $2.50 per meal. Her weekly food budget is $100. Assume that she spends equal amounts on both goods. On the following graph, use the green line (triangle symbol) to draw the college student's budget constraint. Then use the black point (plus symbol) to indicate the initial optimum in this case. (\"D + 45 m Irllial Budget Canslraini 35 '1' a 31: lrlliaIDplimumlA) = D g 25 o 5'.- g 2\" NewBudgelcansn-aint W E. '5 .' g m _ New omnnum [B] o 2 4 a a 1o 12 1a 1a 1a 20 Meat; aching Hal Suppose the price of a Cup 0' Soup now falls to $2. Assume that the student now spends 70 percent of her income on dining hall meals. 0n the preceding graph, use the blue line (circle symbol) to draw the college student's new budget constraint. Then use the grey point (star symbol) to indicate the new optimum in this case. decreased As a result of this price change, the quantity of Cup 0' Soup packages consumed d- ' This means that Cup 0' Soup must be . ' aood, and the income effect was dominated by V the substitution effect. outweighed 0n the following graph, use the blue line (circle symbol) to draw the student's demand for Cup 0' Soup by plotting the optimum information from points A and B. CD III} 3.5] Demand and 25] 7.00 Price 1.5] 11!: 0.5] I} 10 12 1' 16 1B 211 22 24 26 Quamy of Cup 0' Soup True or False: Cup 0' Soup is not a Giifen good. TRUE l FALSE #2

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