The first Green Jelly Bean Mendel gets gives him 48 utils of happiness. Every subsequent green jelly bean gives him two less utils than the previous. Each Blue Jelly Bean gives him 60 utils. Formally, Mendel has a utility function . Where G is Green Jelly Bean and B is Blue = 2 + 50 + 60 Jelly Beans. Green Jelly Beans cost $0.10 and Blue Jelly Beans cost $0.15. Mendel has $2.00. 1. Draw Mendel's budget constraint. Put blue jelly beans on the horizontal axis. 2. How many blue jelly beans should he buy? 3. Draw an indifference curve this optimal point is on. 4. Suppose the price of blue jelly beans were to change to $0.10. Find and graph Mendel's new optimal consumption point. 5. Calculate the cross price elasticity between the quantity of green jelly beans demanded by Mendel and the price of blue jelly beans. 6. Suppose that during the same time period, the CPI (calculated using goods that have nothing to do with this problem), changed from 100 to 40. Has the real price of blue jelly beans increased or decreased? 7. Using this decrease in price and Mendel's optimal consumption points, estimate Mendel's elasticity of demand for football tickets using the midpoint method. 8. Find Mendel's demand curve for blue jelly beans. 9. Suppose there are 1000 consumers like Mendel, draw a market demand curve for blue jelly beans. 10. Suppose the market supply curve is for blue jelly beans . What will the = 1000 + 200000 price be? 11. At this new price, calculate Mendel's consumer surplus. 12. Would producers benefit from a price floor 1 cent higher than this equilibrium price? 13. If we were to double the number of consumers (with preferences just like Mendel's), would the number of blue beans sold double?