Suppose that a consumer has the indifference map shown above
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Suppose that a consumer has the indifference map shown above

5.


Suppose that a consumer has the indifference map shown above. The relevant budget line is LZ. The price of good X is $20.

(a) What is the consumer’s income? Please show your calculations.

(b) What is the price of good Y? Please show your calculations.

(c) What is the slope of the budget line LZ. 

(d) What point in the graph will lead to utility maximizing with the budget line LZ and the indifference curves as shown above? Please label the point C. 

(e) What is the marginal rate of substitution (slope of the indifference curve) at the utility maximizing point you have shown in (d)?

(f) Please explain why the consumer will not choose point A or point B.

Hint
Economics a)Consumer income is the sum accessible for after-charge allowance. It can likewise be depicted as an abundance increment, particularly from work or speculation. Individual pay is the singular pay that one gets. After-charge pay is the total compensation after all relevant expenses have been deducted....
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