What can you say about Chriss total utility at this equilibrium?

Chris has an income of $90 per month at allocate between GOODS A and B. Initially the price of A is Show more Chris has an income of $90 per month at allocate between GOODS A and B. Initially the price of A is $3 and the price of B is $4. a. Draw Chriss budget line indicating its slope if units of A are measured on the horizontal axis and units B are on the vertical axis. b. Add an indifference curve to your graph and label the point of consumer equilibrium. Indicate Chriss consumption level of A and B. Explain why this is a consumer equilibrium. What can you say about Chriss total utility at this equilibrium? c. Now suppose the price of A rises to $4. Draw the new budget line a new point of equilibrium and the consumption level of Goods A and B. What is Chriss marginal rate of substitution at the new equilibrium point? d. Draw the demand curve for Good A labeling the different price-quantity combinations determined in parts (b) and (c). Show less

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