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18 Q5. (10 points) Sherry is on vacation and wants to bring souvenirs home to family and friends. Her souvenir budget is $100, and she

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18 Q5. (10 points) Sherry is on vacation and wants to bring souvenirs home to family and friends. Her souvenir budget is $100, and she can choose between T-shirts (X), which cost $20 each, and key chains (Y), which cost $5 each. X and Y are normal goods. a. Draw a graph of Sherry's budget line in the figure below. Key chains (number) 25 - 20 15 10 5 T-shirts (number) b. What is the slope of Sherry's budget line? and Draw the indifference curve on figure a c. Suppose that Sherry now finds a store where T-shirts are on sale for $10 each. (Key chains still cost $5 each). Draw the new budget line in the figure and show the effects of a change in price of T-shirts on the consumer's optimal bundle of T-shirts and Key chains. d. What is the slope of the new budget line? Ans

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