1. Assume that the data in the following table give an indifference curve for Mr. Chen. Graph this curve, putting A on the vertical axis and B on the horizontal axis. Assuming that the prices of A and B are $1.50 and $1, respectively, and that Mr. Chen has

$24 to spend, add his budget line to your graph. What combination of A and B will Mr. Chen purchase? Does your answer meet the MRS = PB/PA rule for equilibrium? LO7.6 Units of A Units of B 16 6 12 8 8 12 4 24