Microeconomics

Consider the optimal consumption bundle for a consumer who is choosing between two goods, X and Y, which she considers perfectly substitutable for one another. In particular, her utility function from a bundle with :1: units of good X and y units of good Y is given by u(:c,y) = m+4y (a) On a graph, draw 3 example indifference curves for this consumer. Label the vertical and horizontal intercepts for each indifference curve. (b) Derive and calculate the marginal rate of substitution of good X for good Y. (c) Suppose the consumer has I = $90 to spend on the two goods, that the price of good X is $2 per unit and the price of good '1' is $5 per unit. Solve for the optimal consumption bundle for the consumer and explain [in words). (d) Now suppose the price of good '1' increased to $9 per unit. How would this affect the optimal bundle? (e) Finally, suppose the price of good Y increased, but only to $6 per unit. Compared to part {c}, how would this affect the optimal bundle