Suppose that a consumer consumes only two products namely Beer and Hamburgers. The price of Beer is R40 and the price of Hamburgers R120. The consumer receives a monthly income of R1200.

1. Based on the information regarding the price of the two products consumed by and the monthly income of the consumer, graphically illustrate the consumers budget line. Let Beer be on the Y-axis and Hamburgers on the X-axis. Marks will be allocated for the calculated value of the points of intersection.
2. Illustrate by aid of a graph how the budget line will If the price of Hamburgers decreases from R120 to R100.