Question: please help d)-f) Problem 3 Every week Ryu spends $20 on vitamin water (x) and protein bars (y). Ryu considers vitamin water and protein bars

please help d)-f)

please help d)-f) Problem 3 Every week Ryu spends $20 on vitamin

Problem 3 Every week Ryu spends $20 on vitamin water (x) and protein bars (y). Ryu considers vitamin water and protein bars imperfect substitutes and his indifference curves are concave up. At the local store, vitamin water costs $2 per bottle and protein bars cost $1 each. At these prices, Ryu buys 8 bottles of vitamin water and 4 protein bars. a) Draw Ryu's budget constraint if he purchases vitamin water (x) and protein bars (y) at the local store. Suppose Ryu could buy protein bars and vitamin water at a discount store where they both cost $1 per unit. b) In the diagram, draw a second line to illustrate Ryu's budget constraint if he purchases water and bars at the discount store. c} How much money does Ryu save if this week he buys the 8 bottles ofwater and the 4 protein bars at the discount store? Suppose the discount store is in a different town and it costs Ryu the saving you computed in part c) to travel there. d) HOW does this affect Ryu's budget constraint when shopping at the discount store? Illustrate this in your diagram. e} At the discount store, would Ryu purchase 8 bottles of vitamin water and 4 protein bars? Justify your answer. f) Use the concepts of Slutsky and Hicks compensation to explain that the amount you found in part c) is lower than the maximum amount Rvu is willing to Dav to travel to the discount store and shot) there

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