Make sure toshow all work. For consistency,putelectric vehicles(E)on the x-axis of any graphs.

1.Consideran individual thatspendstheirfunds on eitherelectric vehicles(E) oron other goods(G). Each month, theindividual has $3,000 to spend, the priceto lease one electric vehicle is$600,and the price of oneunit ofGis $20. Preferences can be represented by theutility function(E, G)=^1/21/2, where the marginal rate of substitution is /

a.Write down theindividual'sbudget lineand show it graphically with electric vehicles on the x-axis and other goods on the y-axis. Label the x-and y-intercepts.

b.Find the optimal bundle of electric vehicles(E) and other goods (G)and add it to your graph above[fractional units are fine]. Sketch a representative indifference curve. How much utility does this bundle give?