1) For the utility function, U=10X0.6Y0.4 and where the price of good X = 10, price of good Y = 20 and consumer's income is 200, The utility level is 77.33. Please answer the following

a) Graph the indifference curve for the consumer. your graph needs to be accurate and to scale, the solution for equilibrium will be by reading values from your graphs.

b) On the same graph as above, graph the budget line and write the equation for the budget line

c) On the graph identify and optimal level on consumption of each good.

d) Calculate and show your work for marginal rate of substitution based on the answers obtained from question c. Show MRS in terms of X and Y.

e) What is market rate of substitution for the budget line