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Question 2 (4.5 marks) Angela has 1, 200 dollars to allocate between two goods and let r, and r2 denote the respective amounts of good 1 and good 2 that she purchases. Good 1 costs 50 cents and good 2 costs 100 dollars. a) Use notation to express the set S which contains all bundles that Angela can afford. (0.5 mark). Depict this set with the use of a clearly labelled graph (0.5 mark). b) What is the difference between the budget set and the budget line? Explain in the context of the above example. (0.5 mark) Write down the set A that contains all bundles belonging in Angela's budget set and in Angela's budget line. (1 mark) c) Suppose that the price of good 1 increases to 2 dollars and the price of good 2 decreases to 50 dollars. In a single graph, show Angela's budget line both before and after the change in prices (1 mark). Do these budget lines have any points in common? Write down the set B that contains all points that the two budget lines have in common (1 mark) (Hint: Mind the difference between budget set and budget line) (Note: if they do not have any common points then B is empty and typical notation for the empty set is {0}, or {})