4. In this problem, we will study how di§erent types of promotions a§ect a consumerís budget constraint.
Suppose that a consumer has $200 to spend per month. Assume that the price of a unit of a household product is $5. For each of the following scenarios, draw the consumerís budget constraint by plotting all else on the y-axis and household products on the x-axis.
(a) (2 points) For every $100 she spends on household products she gets $10 back which she can spend on anything.
(b) (2 points) Suppose that once the consumer purchases 10 household products, each additional household product is 50% cheaper.