Jean's initial budget constraint L', optimal consumption bundle e, , and level of utility i' are illustrated in the figure to the right. Suppose the price of coffee and cream both increase, with the price of coffee increasing by more than the price of cream. 1.) Use the line drawing tool to draw Jean's new budget constraint with the price increases and with her COLA in the figure to the right. Label this line 'L2. 2.) Use the point drawing tool to identify her optimal consumption bundle. Label this point 'e,'. Carefully follow the instructions above, and only draw the required objects. Coffee

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What are the Revenue projects?

There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below.   Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190