Suppose Anna's utility function is given by Utility = FC, where F and C are the two goods available for purchase: F fish and C chips. U = (F,C) utility, or benefit, is a function of fish and chips. a. Suppose Anna's budget is $200 and the prices of F is $20 and of C is $10. Graph the budget constraint. Fish Chips b. How many units of fish and chips will Anna purchase at these prices income? Show graphically. What is her corresponding level of utility (which equals her income)? Explain what is an indifference curve, and what does it mean to be tangent to the budget line? (See pages 108-110 in textbook.) c. The oceans became scarce from overfishing. What if the price rises to F is $25. Show graphically the new line, in relation to your original budget line, with the effect on F quantity. Fish Chips