|Question||Suppose the price of X is $40, the price of Y is $50 and a consumer has income of $400.
a. Draw the budget constraint for this consumer. What is the of buying one unit of good X?
b. Which of the following combinations of X and Y will be represented by a point on the consumer’s budget constraint? Plot the three bundles in your budget constraint diagram.
i. 10 units of X and 1 unit of Y
ii. 5 units of X and 4 units of Y
iii. 1 unit of X and 2 units of Y