Hello,

I am struggling with this question if you could help please :)

Adam likes to eat cheese while drinking wine. He has a weekly gourmet budget of S144 In the diagram below, cheese is on the horizontal axis and wine is on the vertical axis The intercepts are 10 bottles on the wine axis and 6 kilos on the cheese axis. Adam has also been observed to buy 3 kilos of cheese and 5 bottles of wine. Budget Line 2 10 11 es cheese (kilo) a) Draw the budget line in the graph above using the initial drop-down. b) What are the prices of wine and cheese? (Make sure your answers are accurate to two decimal places) Price of a bottle of wine = SO Price of a kilo of cheese = $ c) Suppose that the price of a bottle of wine increases to $247 but that Adam's income simultaneously increases by $48. Draw the new budget constraint in the graph above using the second drop-down