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Assume that Joe consumes Food and clothing. Food Clothing (a) Please draw the consumer's indifference curve and show the equilibrium point (Utility maximization point) for

Assume that Joe consumes Food and clothing.

Food

Clothing

(a) Please draw the consumer's indifference curve and show the equilibrium point (Utility maximization point) for the consumer and label it "A".

(b) On the same graph that you have drawn for (a) please show what would happen to the budget line if the price of food increased and the price of clothing decreased. You must not draw a different graph for (b) but answer (b) on the same graph as for (a).

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