## Answers

a) Since Samantha gets to pay $8 after 25 meals, her new budget line would tilt outwards after she has consumed 25 meals. So her new budget line would afford her 5 books or 51.25 meals.

b) Since for every two books she purchases, she gets the next one for half the price, this she can afford 6 books in total. Samantha's new budget line is shifted outwards. (dotted line)

c) After every two books, if the book store offers Samatha $10 back, she can afford a total of 5.2 books.

d) By spending meal subsidy on meals and book subsidy on books, Samantha'

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