C. ) Which budget line would be relevant to utility maximizationanalysis if money income rises from original level L1 while theprices of X and Y remain the same.Which combination of X and Y will the consumer choose?Choose corresponding letter. ////////////////////////D. ) How will optimum combinations change as budget moves fromL1 to L2? L1 to L3? Which combination contains more units ofeach good?

2. Answer the following question, given a budget line and an indifference map below. L3 L1 Quantity of Y L2 13 - 12 Quantity of X a. Suppose budget line is LI, what combination of X and Y will the consumer choose? Choose corresponding letter. Why will the consumer not choose point A or C? b. Which budget line would be relevant to utility maximization analysis if money income remains at the original level as L1, the price of X remains the same, and the price of Y increases. Which combination of X and Y will the consumer choose? Choose corresponding letter