A consumer has 100 dollars to spend on two goods, price of a sweater is $ 10 and price of shoes is $ 20. Assume the consumers budget line has shoes on the vertical axis and sweaters on the horizontal axis;

a. Determine the slope and the intercept of the budget line

b. What will be the effect of the following on the budget line:

Increase in price of sweaters

Increase in income of consumer

If price of a shoes decreases to $ 10 what is the new intercept of the budget line