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3. Use the following graph showing a consumer's budget line and some indifference curves to answer the following questions. You must show work. The consumer's
3. Use the following graph showing a consumer's budget line and some indifference curves to answer the following questions. You must show work. The consumer's income is $600. 40 30 Quantity of Y 20 10 B 0 10 20 30 40 50 Quantity of X a) Given the information provided: What is the price of Good X? What is the price of Good Y? How did you find your answers? b) Suppose that the consumer is currently at consumption bundle A, use marginal analysis to explain why bundle A is not optimal. Explain your answer. c) At the optimal consumption bundle, what is the Marginal Rate of Substitution? Explain how you found this answer. Interpret the meaning of the Marginal Rate of Substitution at this bundle. d) Suppose that the prices of Good X and Good Y remain unchanged, under what circumstances would the consumer be able to reach indifference curve III? Explain your
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