Suppose a consumer has M = $40 to spend.

3. (14 total points) Suppose a consumer has M = $40 to spend. The price of Good X is Py = $2 and the price of Good Y is Py = $5. a) (6 points) Draw the consumer's budget constraint. Be sure to label your graph accurately, and identify the vertical and horizontal intercepts. (Please put the quantity of Good Y on the Y-axis, and the quantity of Good X on the X-axis).\fc) (6 points) Suppose the government wants to limit the amount of Good X that is purchased, so they enact a program where the price of Good X goes up to $4 for any amount of Good X greater than X = 10 units. So Px = $2 if X 10. Draw the consumer's budget constraint. Be sure that your graph is accurate and carefully labeled