Question: Question 1 A consumer is indifferent between one pizza and one burrito. The price of burritos and pizza are Pg, : $3 and Pp :

Question 1 A consumer is indifferent between one pizza and one burrito. The price of burritos and pizza are Pg, : $3 and Pp : $4. 1.1 Write the utility function for the consumer. Suppose the consumer has $12 to spend on food, how many burritos and pizza will they consume? Plot the budget constraint and indifference curves. [3] 1.2 Suppose the price of a burrito increases to P5 = $4.50. How will the consumer's choice of consumption bundle change? Plot the budget constraint and indifference curves in this case. [3]

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