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Consider two goods: 'milk' and 'juice' where price of 'milk = 2 and price of juice = 4. a) Assuming a budget $120, calculate and

Consider two goods: 'milk' and 'juice' where price of 'milk = 2 and price of juice = 4.

a) Assuming a budget $120, calculate and graph individual's budget line.

b) Explain and show on a graph the shift in the budget line when the price of milk rises to 3.

c) Explain the conditions under which the consumer can reach equilibrium. Show your work graphically.

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