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7. Let's still assume an individual has preferences of the form U(X1,X2) = 3x1/2+ x2 . We discussed Engel curves briefly in class - the

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7. Let's still assume an individual has preferences of the form U(X1,X2) = 3x1"/2+ x2 . We discussed Engel curves briefly in class - the idea is the same as Demand Curves, but with Income. In other words, the Engel Curve for Good 1 will plot the amount of Good 1 consumed at ever Income Level. To graph an Engle Curve you solve for the Demand Functions in an identical manner as you did for the Demand Curve. Then, solve for income instead of solving for a price, plug in values for your good, then plot the points. Which of the following most accurate portrays this individual's Engel curve for Good 1 when pi=3 and pz=2? Hint: Your answer should be consistent with Question 21. A B C D Good

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