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Please show all your steps for part a through c. Homer's Marginal Rate of Substitution for donuts and. .. beverages is NLRS = B 2059

Please show all your steps for part a through c.

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Homer's Marginal Rate of Substitution for donuts and. .. beverages is NLRS = B 2059 where D is number of boxes of donuts and B is 40 oz. cans of... beverage. Homer has $300 to spend this semester on these two items. Each donut box (D) costs $10, and each can of beverage costs (B) $5. Homer is currently consuming 20 donut boxes and 20 beverages this semester. 3) b) Graph Homer's budget constraint, and show that this is a feasible bundle for Homer (on or inside his budget constraint). Put donuts on the xaxis. Use the MRS and the slope of the budget constraint to show that Homer's current consumption is not optimal. Draw an indifference curve through the current bundle that reects the MRS you calculated and the suboptimality of the bundle. You don 't need a precise graph of the indierence curve as long as your graph captures the slope of the 1C relative to the slope of the budget line. Lastly, propose a shift in consumption that will increase Homer's utility. You don 't need to use specific numbers based on your picture and/or the slopes, where are the bundles that Homer can aord that give higher utility? Solve for Homer's optimal bundle. Draw a new indifference curve in your graph that shows that this new bundle is optimal. Use the \"equal slopes \" condition to derive a condition on B and D at the optimal bundle, then plug that in to the budget constraint to nd the specific bundle Homer can a'ord where this condition is true

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