1. Assuming an individual has a total income of $10,000 and the current price of good x is $25 and the price of good y is $60, graphically show the possible combinations of the two goods the consumer could purchase. In addition, provide an interpretation of the slope of the budget line (what does it measure and what is its value in this example). (10 Points) a. In addition, draw new graphs to show the effects of the following shocks and provide interpretations of the change in slope for each: i. Income decreases to $9000; (6 Points) il. Price of good x increases to $34; (6 Points) iii. Price of good y decreases to $40; (6 Points) and iv. Price of good y decreases to $10 and the price of good x increases $90. (12 Points) 2. Assume two countries (Canada & Britain) each produce wheat and cloth. Given the following details with respect to resources required to produce eacl'l good in each country, answer the following questions. Country Production (1 Hour of Labor Time) Cloth Wheat Britain 7 3 Canada 4 9