Inayah is a rational consumer who consumes milk and cookies only from her monthly income of Rs. 1,500. If the price of milk is Rs. 500 per liter and the price of one pack of cookie is Rs. 300, answer the following questions:

a)Given the information above write the equation of the budget line and illustrate the same through the two-dimensional labeled diagram.

b)If Inayah spends all of her income on consuming one good, find:

i.how much cookies she could afford?

ii.how much milk she could consume?

c)Identify the impact of an increase in the income from Rs. 1,500 to Rs. 1,800 on Inayah's consumption level. Also illustrate it using the two-dimensional labeled diagram.

d)Assume that Inayah's consumption of milk and cookies give her following level of utility: