3. Suppose the price of X is $40, the price of Y is $50, and a consumer has income of $400.

a. Draw the budget constraint for this consumer. What is the opportunity cost of buying one unit of good X?

b. Which of the following combinations of X and Y will be represented by a point on the consumer’s budget constraint? Plot the three bundles in your budget constraint diagram. i. 10 units of X and 1 unit of Y ii. 5 units of X and 4 units of Y iii. 1 unit of X and 2 units of Y