Question: Budget Constraint = PaA + PdD = M Pa=12 Pd= 10 M=120 Use indifference curves and budget constraints to illustrate how a rational consumer makes

Budget Constraint = PaA + PdD = M Pa=12 Pd= 10 M=120 Use indifference curves and budget constraints to illustrate how a rational consumer makes choices regarding the selected product or service.

Illustrate the income offer curve and Engel curve for a 50% increase in consumer income. Explain the significance of these curves and how they reflect changes in consumer choices.

Illustrate the income and substitution effects of a 20% increase in the price of one of the products or services. Explain how these effects influence consumer behavior and preferences.

Illustrate the price offer curve and demand curve for the 20% increase in the price of the selected product or service. Discuss the implications of these curves on consumer demand and the market.

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