Problem 1. You met Grandpa in Problem Set 2. In case you don't remember, Grandpa is very particular about his consumption of crackers and cheese. His preferences dictate he must accompany every cracker with a 10-gram slice of cheese. Having a different ratio of cheese to cracker would be a waste. However, as soon as Grandpa reaches a consumption of five crackers with cheese, his optimal cheese-to-cracker ratio doubles, going up to 20 grams of cheese per cracker. Assume cheese and crackers are perfectly divisible. a. Assume Grandpa has a budget m = $5, the price of each cracker is p1 = $1, and the price per gram of cheese is p; = $0.10. Find the quantities demanded by Grandpa of crackers and cheese. b. Now assume m = $20, p1 = $1 and p2 = $0.10. Find the quantities demanded by Grandpa of crackers and cheese. c. Now assume m = $20, p1 = $1 and p2 = $0.50. Find the quantities demanded by Grandpa of crackers and cheese. d. Draw your answers to a, b and c in one single graph. . In a different graph, draw Grandpa's income expansion path. Hint: there is a kink. f. Find the demand functions for cheese and crackers in terms of m, p1 and p2. Hint: the demand functions must reect the kink in the income expansion path. I'D