Eric buys only milk and cookies. In year 1, Eric earns $90, milk costs $2 per quart, and cookies cost $3 per dozen. Use the green line (triangle symbol) to draw Eric's budget constraint on the following graph. Now suppose that all prices increase by 10 percent in year 2 and that Eric's salary increases by 10 percent as well. Use the blue line (circle symbol) to draw Eric's new budget constraint on the preceding graph. True or False: Eric will consume more milk and fewer cookies in year 2 than in year 1. True False.

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