Ben allocates his lunch budget between two goods, pizza and burritos.
a. Illustrate Ben's optimal bundle on a graph with pizza on the horizontal axis.
b. Suppose now that pizza is taxed, causing the price to increase by 20 percent. Illustrate Ben's new opti- mal bundle.
c. Suppose instead that pizza is rationed at a quan- tity less than Ben's desired quantity. Illustrate Ben's new optimal bundle.