1. You have an income of $40 to spend on two commodities. Commodity 1 costs $10 per unit, and commodity 2 costs $5 per unit.

(a)Write down your budget equation.

(b)If you spent all your income on commodity 1, how much could you buy?

(c)If you spent all of your income on commodity 2, how much could you buy? Use blue ink to draw your budget line in the graph below.