8 12 16 10.Antonio buys 5 new college textbooks during his first year at school at a cost of $80 each.Used books cost only $50 each.When the bookstore announces that there will be a 10%increase in the price of new books and a 5% increase in the price of used books,Antonio's father offers him $40 extra. What happens to Antonio's budget line?Illustrate the change with new vertical axis. In the first year he spends $80 each on 5 new books for a total of $400 For the same amount of money he could have bought 8 used textbooks. His budget line is therefore 80*New+50*Used=400.After the price change,new books cost $88.used books cost $52.5.and he has an income of $440.If he spends all of his income on new books,he can still afford to buy5new books,but can now afford to buy 8.4 used books if heb uys onl used books.The new budget line is 88*New+52.5"Used=440.The budget line has changed its slope and become flatter if we place used books on the horizontal axis b. Is Antonio worse or better off after the price change?Explain The first year he bought 5 bo oks at a cost of $8 0 eachfor a total of The new price of books is $88 and the cost of 5 new books is now $440 The $40 extra income will cover the price increase.Antonio is definitely not worse off since he can still afford the same number of new books.He may in fact be better off if he decides to switch to used books. 11.Consumers in Georgia pay twice as much for avocado as they do for peaches.However,avocados and peaches are equally priced in California.If consumers in both states maximize utility,will the marginal rate of substitution Ounces of Soft Drink 8 12 16 10. Antonio buys 5 new college textbooks during his first year at school at a cost of $80 each. Used books cost only $50 each. When the bookstore announces that there will be a 10% increase in the price of new books and a 5% increase in the price of used books, Antonio’s father offers him $40 extra. a. What happens to Antonio’s budget line? Illustrate the change with new books on the vertical axis. In the first year he spends $80 each on 5 new books for a total of $400. For the same amount of money he could have bought 8 used textbooks. His budget line is therefore 80*New+50*Used=400. After the price change, new books cost $88, used books cost $52.5, and he has an income of $440. If he spends all of his income on new books, he can still afford to buy 5 new books, but can now afford to buy 8.4 used books if he buys only used books. The new budget line is 88*New+52.5*Used=440. The budget line has changed its slope and become flatter if we place used books on the horizontal axis. b. Is Antonio worse or better off after the price change? Explain. The first year he bought 5 books at a cost of $80 each for a total of $400. The new price of books is $88 and the cost of 5 new books is now $440. The $40 extra income will cover the price increase. Antonio is definitely not worse off since he can still afford the same number of new books. He may in fact be better off if he decides to switch to used books. 11. Consumers in Georgia pay twice as much for avocados as they do for peaches. However, avocados and peaches are equally priced in California. If consumers in both states maximize utility, will the marginal rate of substitution