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Zadie can buy two kinds of goods, food and clothing. She earns 400 per week. Food items cost 4 each, and items of clothing cost

Zadie can buy two kinds of goods, food and clothing. She earns 400 per week. Food items cost 4 each, and items of clothing cost 20 each.

  • Assuming that food and clothing are both normal goods, show on a copy of your diagram for Question 3a what would happen to the utility maximising level of feasible consumption if the price of clothing were increased to 40 per item while the price of food remained unchanged.
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