Question: fSuppose that a consumer has the indifference map shown above. The relevant budget line is LZ. The rice of and X is 20. (a) What

\fSuppose that a consumer has the indifference map shown above. The relevant budget line is LZ. The rice of and X is 20. (a) What is the consumer's income? Please show your calculations. (b) What is the price of good Y? Please show your calculations. (c) What is the slope of the budget line LZ. (d) What point in the graph will lead to utility maximizing with the budget line L2 and the indifference curves as shown above? Please label the point C. (e) What is the marginal rate of substitution (slope of the indifference curve) at the utility maximizing point you have shown in (d)? (1) Please explain why the consumer will not choose point A or point B

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1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.