Mayor Bloomberg’s Soda ban is expected to be decided on Thursday, Sept 14. WEDNESDAY, Sept. 12 (HealthDay News, US News and World Report) – New York City’s controversial proposal to regulate restaurant sales of large sugary drinks is coming to a head, with the city’s Board of Health scheduled to decide the measure’s fate on Thursday. Mayor Michael Bloomberg’s self-appointed board is expected to pass the measure, effectively prohibiting city restaurants, delis, sports facilities, and street vendors (but not grocery stores or convenience stores) from selling sweetened beverages in servings exceeding 16 ounces. Consider the restaurant soda market without the Bloomberg soda ban. The bundles include Large (32 ounce) sodas, L, and Small (16 ounce) sodas, S, from restaurants. Abby’s marginal rate of substitution is -2 at all bundles. The price of L is Pl = 3 and the price of good S is Ps= 2. Income allocated to restaurant sodas is 36.Draw the budget constraint (Put Large sodas on the X axis and Small sodas on the Y axis)Draw the indifference curve that includes the optimal bundle of large and small sodas.What is the optimal bundle? If Pl increases to PL = 4, does the optimal bundle change?Show on the graph. If PL increases to PL = 6, does the optimal bundle change?Show on the graph. For what prices, PL, does the Bloomberg ban have NO effect on Abby’s consumption of soda?