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Okay, guys, so this is chapter 21 problem seven.
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And this problem, we're given that there's a college student who has $60 a week to spend on food.
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She can either go to the dining hall and spend $6 per meal or have a cup of soup for $1 .50 per meal.
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And so the first part of the question is asking us to draw her budget constraint and her indifference curve, assuming she spends 50 % of her money on each good.
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So we have here our cur.
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We have soup and we have dining hall and her budget constraint.
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And remember, she has $60 to spend.
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So she spent it all on soup.
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She could consume six times or she could go to the dining hall 10 times.
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And if she spends 50 % of her money on each, he's going to go to the dining hall five times.
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And she's going to consume 20 cup of soups.
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And here's her indifference curve that lies tangent to her budget constraint, and here's point a.
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Next, we're given that cup of soup increases to $2.
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And so now her budget constraint is going to change.
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The price of the dining hall hasn't changed...