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please give the explanation as well thanks 3. (17 marks) This question is designed to exen'l'line how we can utilize our basic theory without having

please give the explanation as well thanks

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3. (17 marks) This question is designed to exen'l'line how we can utilize our basic theory without having an explicit indifference curve. Suppose Lia has an income of Y = $500 and only consumes two good: memory sticks (to store free economics papers she downloads from the library) and hardcover novels (which she refuses to check out from the library). Furthermore, let the price of memory sticks be P3 = $25 and the price of hardcover novels be Pa = $20. (a) (5 marks) Create a graph of Lia's l'Jel'iaviour with the assumption that her utility is consistent with our normal assumptions (cg. HU/('lqi- :> U and {VII/6):}?

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