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Part 1 Consider a single-agent model of consumption where the only two goods are meat and potatoes. Let 9:1 represent monthly meat consumption (in pounds)
Part 1 Consider a single-agent model of consumption where the only two goods are meat and potatoes. Let 9:1 represent monthly meat consumption (in pounds) and $2 represent monthly potato consumption (also in pounds). Let p1 and p2 represent the price-perpound of meat and potatoes, respectively. Assume our agent has a xed monthly income I to spend on meat and potatoes. Q1: Let p1 = $5, 192 = $2, and I = $100. Write down the mathematical expression of the budget constraint facing the consumer. Q2: Illustrate the budget constraint by graphing the budget set. Label the budget set as well as the budget h'ne
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