Assume your income M = $500. You can spend your income on two goods: T-shirts (good X) and Jeans (good Y). The market prices for these two goods are Pr = $10 and Py = $25. Draw your budget line, and show the set of affordable bundles of Jeans and T-shirts. What is the market rate of substitution (slope of the budget line), or how many Jeans can you give up to get one T-shirt according to the prevailing market prices? If your income increases to M = $750, draw the new budget line, and explain whether this increase affects the market rate of substitution? Assume your income is M = $750, as before. Now, the price of Jeans increases to Py = $30, what happens to the budget line and the market rate of substitution? How many jeans do you need to give up for one T-shirt