A "poor" individual faces a choice between expenditure on rental of housing (H) and all other goods (G). Theindividual's total budget is given as $1000, P_H = $100 and P_G = 200.

1. The individual's preferences over H and G can be represented by a set of indifference curves. Draw an indifference curve on your diagram to illustrate the point that this individual will choose. At this optimal point, what is the value of the marginal rate of substitution?