1.A person has $ 100 to spend on two goods(X, Y) whose respective prices are $3 and $5.

a)Draw the budget line.

b)What happens to the original budget line if the budget falls by 25%?

c)What happens to the original budget line if the price of X doubles?

d)What happens to the original budget line if the price of Y falls to 4?

e)What happens to original budget line if the government levied a per unit tax of 50 cents on good X?

f)What happens to original budget line if the government gives a lump sum subsidy of birr 10?