A consumer must divide $600 between the consumption of product X and

product Y. The relevant market prices are Px =$10 and Py =$40.

a.Write the equation for the consumer's budget line.

b.Illustrate the consumer's opportunity set in a carefully labeled diagram.

c. Show how the consumer's opportunity set changes when the price of good

X increases to $20. How does this change alter the market rate of substitu-tion between goods X and Y?