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For the following two problems, assume that the goods being consumed are eggplant [measured in pounds] and brussels sprouts {measured in pounds] where brussels sprouts
For the following two problems, assume that the goods being consumed are eggplant [measured in pounds] and brussels sprouts {measured in pounds] where brussels sprouts is on the vertical axis and eggplant is on the horizontal axis. The price of brussels sprouts is 553'lb. [Pa = $5} and the price of eggplant is $4flb. {P5 = $4}. NOTE: You may wont to sketch out the axes. it). At a Point [1{no picture is provided but vou might draw it}, a budget line intersects [but is not tangent to} an indifference curve. At that point, the value of the marginal rate of substitution is -4. if vou want to move along the indifference curve by one additional pound of brussels sprouts, calculate how much the total expenditure will change. Show vour work and be sure to also clearly indicate the direction of the change (up or down}
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