Rumi has $100 and is deciding how to spend it on bread and wine. The price of bread is $2 and the price of wine is $2. (Both goods are infinitely divisible.)

Write down the budget constraint in terms of1+2= , where1is quantity of bread and2is quantity of wine. (Since this is a linear equation, you could scale , , andby an arbitrary scalar. In this and subsequent questions, just letbe the total budget in dollars.)

Use the original prices ($2 for both bread and wine), but suppose that Rumi's income increases from $100 to $200 when he earns the patronage of the shah. Write down the new budget constraint.