Question-2 (Budget Constraint) Robinson Crusoe lives in an island. There are only two food sources in this island: coconut and berries. There is no money in the island but Robinson uses his time to collect coconuts and berries. He sleeps 8 hours in a day. Collecting a coconut takes 2 hours. Picking a pound of berries takes one hour.

1. Considering the food collection times as the prices in the island, write the budget line equation and draw Robinson's budget line graphically. Specify the intercepts and the slope in the budget line on the graph.

Robinson falls from coconut tree and injures his leg. After the injury collecting coconut takes longer. He can only collect a coconut in 4 hours, but he can still pick berries at the same pace as before.

2. What happens to Robinson's budget line? Show on the graph.

Robinson's injury makes him more sleepy. Now he sleeps 12 hours in a day.

3. What happens to Robinson's budget line? Show on the graph.

Two weeks after the injury, Robinson's leg is slightly better, and he sleeps 8 hours again. When collecting coconut, he can use his leg as the same as before (2 hours per coconut) in the first 4 hours. But after the first 4 hours, he becomes tired because of the injury, and he can only collect coconuts in half speed.

4. What happens to Robinson's budget line? Show on the graph.