Question: Suppose a consumer has the indifference map shown below. The relevant budget line is LZ. The price of good F is $200. 500 4 400

Suppose a consumer has the indifference map shown below. The relevant budget line is LZ. The price of good F is $200. 500 4 400 - 300 - Quantity of Y 200 100 M 100 200 300 400 500 Quantity of X a. What is the consumer's income? b. What is the price of X? c. Write the equation for the budget line LZ. d. What combination of X and I will the consumer choose? Why? What is the marginal rate of substitution (MRS) at this combination? f. Explain in terms of the MRS why the consumer would not choose combinations designated by A or B. g. Suppose the budget line pivots to LM income remaining constant. What is the new price of )? What combination of X and F is now chosen? Why? h. What is the new marginal rate of substitution (MRS)? i Write out the linear demand function for good X. j. Sketch the demand function for good X.|

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