Julian is in pain! He needs to purchase Advil to feel better. Julian has $12 to spend on medication. Suppose that he can buy Advil in two dosages: 200mg and 400mg. Julian only cares about getting better and not about the amount of pills he needs to swallow.
a) A 200mg pill costs $0.3 and a 400mg pill costs $1. What will be in Julian's optimal consumptionbundle?
b) Does your answer change if a 200mg pill suddenly costs $0.6? If yes, how?