Gavin has preferences represented by the utility function (, ) = ^(1/2)E^(1/4) where is toys and is everything else. Assume Gavin has an income of $20 , the price of toys is $4, and the price of a unit of everything else is $1.

A) Assuming Gavin has 8 units of and 3 Toys, how many toys would Gavin be willing to give up to get one extra unit of everything else? Give your answer in a complete sentence.

B) With Toys on the x-axis and Everything Else on the y-axis, draw the indifference curve corresponding to (, ) = 1. Make sure to label everything and be extremely precise. (You should plot at least 5 points, with at least 1 bundle containing less than 1 unit of toys).

C)On a separate graph, draw Gavin's budget line.

D) Now assume Gavin's income is still $20, the price of Everything Else is still $1, but Toys are now, buy-one-get-one-free. In other words, if Gavin purchases a Toy for $4, he gets another Toy for free that he can resell (because the market sells at buy-one-get-one-free, Gavin must as well). On a separate graph, draw Gavin's new budget line.