Suppose that Jacob’s allowance in problem 10A.4 climbs from $5 to $10 per week.
a. Show how the increased allowance alters Jacob’s budget constraint.
b. Draw a set of indifference curves showing how Jacob’s choice of ice cream cones and bottles of smartwater changes when his allowance increases. Assume that both goods are normal.
c. Draw a set of indifference curves showing how Jacob’s choice of ice cream cones and bottles of smartwater changes when his allowance increases. Assume that smartwater is a normal good but ice cream is an inferior good.

Data given in Problem 10A.4

Jacob receives an allowance of $5 per week. He spends all his allowance on ice cream cones and bottles of smartwater.