Problem 2 Unexplained answers will not be graded. Opportunity Set Good Y 40 30 Original Increased Income 75 100 Good X A consumer has an original income M to spend on goods X and Y. The market prices of these two goods are Px =$8 and Py-$20. Based on the information given in the graph above: 1. Determine the consumer income M. 2. Determine the market rate of substitution between goods X and Y? Give an interpretation of your answer. Now, assume that the consumer income increases to a new level M' but the prices stay the same. Based on the information given in the graph above: 3. Determine the increased income M. 4. Does the increase in the consumer income increase the market rate of substitution? Explain your answer.