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(A). Explain why most indifference curves are convex. [4 points] (B). An individual consumes products X and Y and spends $25 per time period. The prices of the two goods are $3 per unit for X and $2 per unit for Y. The consumer in this case has a utility function expressed as: U(X,Y) = 0.5XY MUx = 0.5Y MUy = 0.5X. Express the budget equation mathematically. Determine the values of X and Y that will maximize utility in the consumption of X and Y. Determine the total utility that will be generated per unit of time for this individual. [6 points] (C). Suppose the market for grass seed can be expressed as Demand: Q d = 100 - 2p Supply: : Q $ = 3p At the market equilibrium, calculate the price elasticities of supply and demand. Use these numbers to predict the change in price resulting from a specific tax. [5 points]