Question
Find the equation representing the (hypothetical) budget constraint drawn in part (g). Hint: you know this budget constraint has the same prices as in part
Find the equation representing the (hypothetical) budget constraint drawn in part (g). Hint: you know this budget constraint has the same prices as in part (f), so you need to find the income level m that makes the budget constraint just tangent to the indifference curve passing through Mordecai's chosen consumption bundle in part (e). (4 points) j. Find the amount of each good that Mordecai would consume if is his budget were the one found in part (i). What are the numerical values of the income and substitution effects shown graphically in part (h)? (2 points)
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