Ms. Song has a monthly income of $400 that she allocates among two goods: meat and potatoes.

a. Suppose meat costs $4 per pound and potatoes $2 per pound. Draw her budget constraint.

b. Suppose also that her utility function is given by the equation U(M, P) = 2M + P. What combination of

meat and potatoes should she buy to maximize her utility? (Hint: Meat and potatoes are perfect substitutes.)

c. Suppose instead that her utility function is given by the equation U(M, P) = min{2M ; P}. What combination of meat and potatoes should she buy to maximize her utility? (Hint: Meat and potatoes are

perfect complements.)