Question: pls answer the question below, would be much appreciated. Consider an individual that can consume 2 goods: it and y. The price of good it

pls answer the question below, would be much appreciated.

pls answer the question below, would be much appreciated. Consider an individual

Consider an individual that can consume 2 goods: it and y. The price of good it is p: and the price of good y is Fly. The individual faces a budget constraint of I (or income}. A) Dene and graph the individual's budget line. What is the individual's budget set? B) Show what happens to the budget constraint if I, PX or Py increases. Under which casc{s) does the individual's budget set increase? C) Suppose px = 10 amd P'y =15. What is the opporhmity c0st of consuming 1 unit of good it? What is the opportunity cost of consuming 1 unit of good y? D) If goods )1 and y are perfect compliments and I \"a 0, would you expect the individual to consume only x, only y, or both goods? How do you know? E) Suppose you know the following about the individual's preferences: (I, 12) ~ (4, 3) (4, 6) ~ (3, 3) (1,18)~(3, 6) Construct the individual's preference ordering. Explain what assumptions you are using (when imposed). F} Check whether the function U = xy, can reflect the preferences found in E). G} If U = xy reects the preferences found in part B), does U = 271,589(xy}3 also reflect the preferences? How do you know

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