Question: A consumer allocates her incomem= 10 between goods 1 and 2, and she considers them to be perfect substitutes:u(x1, x2) =x1+x2. The price of good

A consumer allocates her incomem= 10 between goods 1 and 2, and she considers them to be perfect substitutes:u(x1, x2) =x1+x2. The price of good 2 is$1 per unit, and but the price of good 1 is 2x1per unit. That is, good 1 becomes more expensive if more of good 1 is purchased.

(a) Write down an equation expressing the consumer's budget constraint.

(b) Draw the budget constraint, labeling the horizontal and vertical intercepts.

(d) Compute the optimal bundle (x1,x2) demanded by the consumer.

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