Question B1 John spends all of his income on two goods, Bread and Cheese. His utility function is given by the expression U=BC (where B denotes the quantity of bread and C denotes the quantity of Cheese). The market price for the loaf of bread is 1, while the price per block of cheese is 2. John's weekly income is 100. a. Write down John's budget constraint. 14 marks b. Calculate the marginal utility of bread (MUB) and the marginal utility of Cheese (MUC) 14 marks] c. Determine the combination of loafs of Bread and blocks of Cheese which maximize John's utility, given his budget constraint. 14 marks) d. Draw his budget constraint and his indifference curve that represent his preference for loafs of bread and blocks of Cheese. [Put Bread on the horizontal axis and Cheese on the vertical axis] [4 marks e. Suppose the price of Cheese fell to . Draw his new budget constraint. Would we expect the John to be better or worse off now? Explain with reference to your graph. 14 marks)