The point A on the red budget line (FG) as depicted on the graph below shows the equilibrium consumption point of a consumer for some income M. Assume that the price of good Y represented on the vertical axis is Py=$30.

Good! 1. Find the market rate of substitution MRSXJ between goods X and Y and give an interpretation of your result. 2. Determine the price of good X. Explain. 3. Determine the income M of the consumer. 4. At the equilibrium bundle A, how much does the consumer spend on good Y? Explain. 5. How many units of good X does the consumer purchase at point A? 6. Explain what change will cause the budget line to move from F0 to FHZ' 7. On the budget line FH, What point will give the consumer the highest level of satisfaction? 8. \\'V hat point is likely to be the new equilibrium of the consumer