Question: Q:NO: 3. Consider the two goods i.c. mutton and beef. Price of mutton Rs. 250/kg and price of beef is Rs. 125/kg. If income is

Q:NO: 3. Consider the two goods i.c. mutton and beef. Price of mutton Rs. 250/kg and price of beef is Rs. 125/kg. If income is Rs. 20000. (m). Constructa budget line (1).What would happened to budget line il price of beef increases from Rs. 125/hg to Rs. 200 and price of mutton decreases from Rs.250/kg to Rs. 200/kg (c). What would be the shape of budget line if there is a quantity restriction on mutton and one cannot purchase mutton more than 50 kg. However, mutton is available in black market at the price of 300/ kg Q.No:4: (a) Substantiate the following statements (i). An increase in demand means people will be willing to pay a higher price for a given quantity. (in). Indifference curve can intersect each other (ifi). In case of complementary goods demand curve shifts downward to left. (b) What is wrong to say "utility is maximized when the marginal utilities of all goods are exactly equal? Correct the sintement and explain

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