Suppose a consumer has M = $40 to spend.The price of Good X is P_X= $2 and the price of Good Y is P_Y= $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).

b) (2 points) What is the MRT?

MRT = _________________

c) (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 P_X= $2 if X<10, but P_X= $4 for all units of X purchased where X > 10.Draw the consumer's budget constraint.Be sure that your graph is accurate and carefully labeled.