Use the figure below to draw David's budget constraint and indifference curves over goods X and...

    

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Use the figure below to draw David's budget constraint and indifference curves over goods X and Y. 1.a) Draw David's budget constraint. The price of good X is $24 and the price of good Y is $2. David's total income is $576. Indicate on the figure the value of the budget constraint's slope. Also indicate at which value of Y his budget constraint intersects with the vertical axis. Qy Qx 1.b) Draw David's indifference map with three indifference curves in it. Make sure these indifference curves have the properties seen in class. Label each indifference curve, with IC₁ for the one that yields the lowest utility, IC3 for the one that yields the highest utility, and IC₂ for the other one. 1.c) Finally, draw a fourth indifference curve (label it IC"). This indifference curve must contain the bundle of X and Y that maximizes David's utility. Mark that bundle by a point and label it A. Note that you choose where bundle A is located, but bundle A's position (with respect to the budget constraint and indifference curve IC") must be consistent with utility maximization as seen in class. Use the figure below to draw David's budget constraint and indifference curves over goods X and Y. 1.a) Draw David's budget constraint. The price of good X is $24 and the price of good Y is $2. David's total income is $576. Indicate on the figure the value of the budget constraint's slope. Also indicate at which value of Y his budget constraint intersects with the vertical axis. Qy Qx 1.b) Draw David's indifference map with three indifference curves in it. Make sure these indifference curves have the properties seen in class. Label each indifference curve, with IC₁ for the one that yields the lowest utility, IC3 for the one that yields the highest utility, and IC₂ for the other one. 1.c) Finally, draw a fourth indifference curve (label it IC"). This indifference curve must contain the bundle of X and Y that maximizes David's utility. Mark that bundle by a point and label it A. Note that you choose where bundle A is located, but bundle A's position (with respect to the budget constraint and indifference curve IC") must be consistent with utility maximization as seen in class.