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Question 2: Budget constraint and Indifference curve Question Assume the prices of product X and Y are $4 and $2 respectively, and that Mr.Mo has $4000 income. Assume a normal indifference curve. a. Write out Mr.Mo equation to his budget constraint. b. Assume that Mr. Mo needs 500 units of product Y to maximize utility. What combination of X and Y will Mr. Mo purchase? c. Now assume that the price of X changed from $2 to $4, and Mr.Mo changes his consumption of product X to 100 units at the optimal point, redo, parts b and c. d. Draw the budget constraint graph and indifference curve before the change and after the change in the price of Y. Clearly label all points