There are two commodities. We are given two budget sets, Bp0,I0 and Bp1,I1, described respectively by p0 = (1,1), I0 = 8 and p1 = (1,4), I1 = 26. The 000111 observed choice(p,I)x =(4,4). At(p,I),wehaveachoicex suchthat 111 px=I. (a) Determine on a diagram the region of permissible choices x if the choices x and 1 1 3. (20 points) Each of the following sections depicts one decision maker's preferences. In each case decide whether he is an expected utility maximizer (by using an example) or x (b) Determine on a diagram the region of permissible choices x if the choices x are consistent with maximization of preferences that are non-satiated. and x are consistent with maximization of preferences for which both goods are normal