Consider an individual whose income is $100. She consumes two goods, x and y. Price of...

 

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Consider an individual whose income is $100. She consumes two goods, x and y. Price of x (Px) is $2. Price of y (Py) is $5.< (a). Draw the budget line for this individual. You should indicate the values of the intercepts on the y-axis and x-axis.< (b). Using indifference curves and the diagram in (a), indicate the consumer's utility-maximization point (the indifference curves are smooth and convex).< Consider an individual whose income is $100. She consumes two goods, x and y. Price of x (Px) is $2. Price of y (Py) is $5.< (a). Draw the budget line for this individual. You should indicate the values of the intercepts on the y-axis and x-axis.< (b). Using indifference curves and the diagram in (a), indicate the consumer's utility-maximization point (the indifference curves are smooth and convex).<