Question: please hel me to draw the graph For this assignment, you will be utilizing what we have learned this unit to draw a budget constraint

please hel me to draw the graph

For this assignment, you will be utilizing what we have learned this unit to draw a budget constraint and some indifference curves to describe the situation of a rational agent.

Please submit your answers in a word doc.

Imagine our rational agent has $90. They are considering buying some combination of burgers and fries. Burgers cost $6 and fries cost $4.50.

1. BY HAND Draw a budget constraint for this situation. Remember to label both axes.

Hint, first you should find out what the intercepts are -- then you can just draw a line connecting them. Take a picture of the graph you drew and copy it into your document.

  1. On this first graph, by hand, draw the indifference curve which corresponds to the utility maximizing bundle and label the bundle. You can make up whatever bundle you want, just make sure your indifference curve conforms to the assumptions we made about them in this unit. Take a picture of the graph you drew and copy it into your document.
  2. ) Now, imagine our agent's income goes up. Now they have $108 to spend. On your graph, by hand, draw how the budget constraint will shift because of this. Take a picture of the graph you drew and copy it into your document.
  3. ) By hand on the same graph, draw the new utility maximizing indifference curve. Indicate the new bundle the agent will pick. Once again, you can make up whatever bundle you want so long as it does not violate the assumptions we made. Take a picture of the graph you drew and copy it into your document.

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