1.a)Suppose a consumer only buys two goods hotdogs and hamburgers. Suppose the price of hotdog is $1 and the price of hamburger is $2 and the consumer's income is $20. What is the budget equation? Draw the graph from the budget equation.

b)Can you find the real income in terms of hamburger? The real income in terms of hotdogs?

c)What is the opportunity cost of hamburger? Interpret your value.

d)State and prove the 4 properties of indifference curve. Show with a diagram consumer's optimal choice using budget line and indifference curves.

e) What is Marginal Rate of Substitution?