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Shelly consumes only two goods, salad (x) and tea (y). Her utility function is described by U=2x+4y. Assume that Shelly's income is $60, the price

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Shelly consumes only two goods, salad (x) and tea (y). Her utility function is described by U=2x+4y. Assume that Shelly's income is $60, the price of x is $2 and the price of y is $3. Note that salad (x) should be on the x-axis and tea (y) should be on the y-axis. You must label your axes and show all of your work for full credit. (a) Find Shelly's optimal bundle. (b) Draw a diagram that illustrates the optimal bundle along with the associated indifference curve and budget constraint. Be sure that the indifference curve and budget constraint are clearly identified. (c) Imagine that the price of y decreases to $2. Find the income and substitution effects for y. If you choose not to draw a graph (which is fine), write an explanation about how you determined the

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