This question is regarding consumer behaviour.

Assume a household has an income of 100 E per week. The household can spend the income on bread and meat. Both goods are normal goods for the household. One bread costs 2.50 E, meat costs 25.00 C per kg. The household buys 10 breads and 3 kg of meat per week. Suddenly the price for bread increases to 10.00 E. After that the household buys 5 breads and 2 kg of meat per week. 1. Draw the initial and the new budget constraint line. Show the initial and the new choice of the household graphically by using indifference curves. (6 points) 2. Will the consumer achieve a lower utility level after the price change? Explain your answer! (2 points) 3. Which effects are in action if the quantities demanded for bread and meat decrease when the price for bread is increasing? Describe and define the effects. (4 points)