The deadline is 13.15, I would appreciate answers just in easy simple terms. Thank you in advance.

We want to analyze the consumption behavior of altruistic consumers. The utility function of this kind of consumers depends positively on their own level of consumption and on the level of consumption of those poorer than them through donations that it is possible to make towards charity work. The utility function is given by: me, D) = 2(0)% + 9% For every individual, we call R their own income, C their level of own consumption and D their donations to charity. Let's assume that the price of consumption is 1 (erC = 1). The relative price of a donation is called p, it varies positively or negatively depending on the tax system in place, whether or not it facilitates private donations. Each additional euro of donation actually costs the consumer p euro of consumption. Typically, a tax deduction on donations corresponds here to a reduction of p. 1. The following table summarises the information of three different indifference curves. Draw the respective indifference curve on the plan (C, D) and briey describe them. D 100 64 36 16 4 2. Write down the equation for the budget constraint of the consumer 3. On the same graph as the indifference curves, graph the budget constraint of the consumer when R = 10 and p = %. Identify on the graph the optimal consumption bundle, call it A. 4. The government has just decided to eliminate the tax deductions to donations. The relative price of donations is now p = g. Plot the new budget constraint and identify the new optimal consumption basket, call it B. 5. Comment by showing graphically the price effect and the income effect produced by the removal of the tax allowance. Discuss the relative importance of the price effect and in the income effect in light of what was discussed today