Assume that an individual has budget of $100 to spend on soft drink (Y) and pizz

Question

Assume that an individual has budget of $100 to spend on soft drink (Y) and pizza (X) The market prices are $ 20 and $25 respectively.           

How much units does an individual spend each, using entire his budget?  

Show graphically the individual’s budget line for the two products.            

State Marginal rate of Substitution MRS for the two goods           

How does the slope change if the price of apple rises to $10?

How does the slope change if the budget increases by 50%? i.e. income is $200

Explanation / Answer

The utility function is needed here which has not been given. Its not possible to determine it without that.

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