medical costs have increased more rapidly than other prices over the past decade. To illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity of other goods. Furthermore, let income (M) be measured in thousand ringgits, the price of medical services and other goods in terms of ringgit per minute, with income is equal to RM200, Price of X = 4, and Price of Y = 5.

a. Draw the budget line and determine the market rate of substitution. Show the budget set.

b. Explain with diagram what happens to the budget constraint if Px increases from RM4 to RM10. Illustrate the slope of the two budget constraints?