Darius buys only milk and cookies.
a. In year , Darius earns , milk costs per quart, and cookies cost per dozen. Draw Darius's budget constraint.
b. Now suppose that all prices increase by percent in year and that Darius's salary increases by percent as well. Draw Darius's new budget constraint. How would Darius's optimal combination of milk and cookies in year compare to his optimal combination in year ?