a. Suppose the income the consumer has available to spend on goods increases to $30. Graph the new budget line and sketch a new indifference curve to pinpoint the consumer's new optimal consumption bundle. According to your graph, does the consumer purchase more of each good?
b. Sketch a graph (with an appropriate indifference curve) in which one of the goods is inferior. That is, the rise in income causes the consumer to purchase less of one of the goods?