Assume that the data in the accompanying table give an indifference curve for Mr. Chen. Graph this curve, putting A on the vertical axis and B on the horizontal axis. Assuming that the prices of A and B are $1.50 and $1, respectively, and that Mr. Chen has $24 to spend, add his budget line to your graph. What combination of A and B will Mr. Chen purchase? Does your answer meet the MRS = P_B/ P_A.” rule for equilibrium? 

Units of A                               Units of B

16 …………………………….           6

12 …………………………….           8

8 ……………………………...          12

4 ……………………………...          24