Consider a consumer in a perfectly competitive market. The consumer has income |=200 and can purchase good 1 and good 2. Quantities are q1 and q2, while prices are p1 and p2. Suppose prices are p1=25 and p2=20. With quantity q2 on the vertical axis and quantity q1 on the horizontal axis, draw the consumer's budget line. The budget line crosses the vertical axis at q2= v . The budget line crosses the horizontal axis at q1= v . Compute the slope of the budget line. The absolute value of this slope is v . Consumers can purchase good 1 and good 2. Let quantities and prices be represented by Q1, 02, p1 and p2. The graph below represents the market demand for good 1, given the current price of good 2 and consumers' current income. Consider what will happen with the graph if we change the price of good 2, and what will happen if we change consumers' income. Part 1) If goods 1 and 2 are Substitutes and the price p2 of good 2 decreases. then the good 1 demand in the graph below will shift to the V . Part 2) If goods 1 and 2 are complements and the price p2 of good 2 increases, then the good 1 demand in the graph below will shift to the V . Part 3) If good 1 is a normal good and consumers' income decreases, then the good 1 demand in the graph below will shift to the V . Demand for Good 1 Q: Consider a consumer in a perfectly competitive market. The consumer has income 1=90 and can purchase good 1 and good 2. Quantities are q1 and q2. Suppose prices are p1=12 and p2=6. The consumer's utility function is u(91, 92) = 391 92 To maximize the consumer's utility, the optimal mix of goods 1 and 2 is O a. q1=292 O b. q1=q2 O c. 391=292 O d. 2q1=392 O e. 2q1=q2