Please just answer e-i

1. Suppose an individual has an income of $1200 per week. This individual can buy a composite good for $1 per unit or food for an initial price of $8.00 per unit. Assume food is a normal good. You can use "All Other Goods" or AOG for the composite good if you would like to do so. a. Draw a budget constraint that illustrates the above information with your composite good (all other goods) on the Y-axis and Food on the X-axis. Make sure to do the following.... - label each axis - label this budget constraint as BC1 - give the numeric value of the x and y intercepts. b. Draw in an indifference curve where the optimal consumption bundle for this person is to consume 60 units of food. Assume this individual's marginal rate of substitution of food for other goods is diminishing. Label this indifference curve IC1. On your graph, also label exactly how many units of the composite good (all other goods) can be consumed given the budget and prices. c. At this point, what is the value of ( MUtood/MUcompositegood) ? d. Suppose the price of food decreases to $6.00. Draw in this new budget constraint and label it BC2. Give the numeric value of the x and y intercepts. e. Draw in an indifference curve where the optimal consumption bundle for this person is to consume 90 units of food. Assume this individual's marginal rate of substitution of food for other goods is diminishing and the individual's preferences are consistent. Label this indifference curve IC2. On your graph, also label exactly how many units of the composite good (all other goods) can be consumed given the budget and prices. f. In words, explain the substitution effect and how it relates to this problem. Make sure to use relevant economics terms to explain why the substitution effect occurs. g. In words, explain the income effect and how it relates to this problem. Make sure to use relevant economics terms to explain why the income effect occurs. h. On your graph, clearly identify the substitution effect, the income effect, and the total effects of the increase in the price of food. i. According to your graph, are food and the composite goods normal or inferior goods