(b) Draw a graph (with m on the horizontal axis and s on the vertical axis) to show Collin’sbudget line, his indifference curve, and his optimal bundle.

Collin likes milkshakes (m) and sushi (s). His preferenes over these two goods are representedby the following utility functionU (m, s) = 2√m + s.Collin’s income is $100 and the price of sushi is $10.(a) Suppose the price of milkshakes is initially $2. Find Collin’s optimal consumption bundle.(b) Draw a graph (with m on the horizontal axis and s on the vertical axis) to show Collin’sbudget line, his indifference curve, and his optimal bundle.(c) Suppose the price of milkshakes increases to $5. How many units of milkshake and sushiare in Collin’s new optimal consumption bundle?(d) Draw a new graph for the new optimal bundle (or add it to the graph you have drawnabove in part (b)).(e) What are the substitution and income effects that result from the increase in the price ofmilkshake? Calculate these effects algebraically and illustrate them on a new graph.(f) What is the amount of additional income needed for Collin to achieve the initial level ofutility? What is the amount of additional income needed for Collin to purchase the initialbundle? What is the ideal cost of living index

Draw a diagram showing Lucy’s optimal bundle, clearly depicting her budget set and the indifference curve where the optimal bundle lies.

a) Assume Jamaal can work up to 60 hours per week at a rate of$10per hour, and that because of a government subsidy, Jamaal has$200in unearned income per week. Draw Jamaal's budget constraint showing how much Leisure (L) and Consumption (Y) he can have. Label both axes with values and titles. Call this Line A. Assume that Jamaal is a leisure lover and at his preferred bundle he works for 10 hours. Label this point A and draw an indifference curve for this bundle labeledU A​ . How much does he earn? (b) Now assume that the cost of child care for Jamaal's daughter is$100per week which he pays only if he works any hours>0. Re-draw his budget constraint on the same graph and label it Line B. What effect will this cost likely have on the amount of labor Jamaal supplies assuming both consumption and leisure are normal goods? Talk about this in terms of income and substitution effects. If Jamaal preferred to work 10 hours in the case of no child care costs, how many hours do you think he will work now? (c) Now assume that Jamaal's employer is willing to pay$3.33of Jamaal's child care expenses for every hour he works, but only if he works 30 hours or more. Now re-draw Jamaal's budget constraint and label it clearly as Line C. Given what you drew for your previous indifference curves, how do you think this will affect Jamaal's consumption of Leisure and Market Goods? Will he work more, less or the same? Explain why.Thanks in advance!Skip questionStart SolvingExitExitQnA

The ______ bundle of goods and services occurs where the indifference curve is tangent to the budget line.Multiple choice question.utility-maximizingprofit maximizingmost affordablecost minimizing

U(x, y) = (3x + 2y)2 .The price of x is px = $10 per unit and his income is $200.(a) Obtain the equation of Johnathan’s indifference curve for the utility level U = 100. Drawthis indifference curve. (2 marks)(b) The price of y is py = $8 per unit. Obtain the marginal rate of substitution (MRS) and theequation of the budget line. Using a graph, find Johnathan’s optimal consumption bundle.In this graph, show the budget line, the optimal bundle, and the corresponding indifferencecurve. Make sure to label carefully all the curves. (3 marks)(c) Suppose that the price of y drops to py = $6 per unit (the price of x remains the same,at px = $10 per unit, and the income remains the same). Obtain the equation of the newbudget line. Using a new graph, find Johnathan’s optimal bundle with this new price. Inthis graph, show Johnathan’s new budget line, new optimal bundle, and the correspondingindifference curve. Make sure to label carefully all the curves. (3 marks)(d) Now suppose that the price of y is py = $8 per unit if Johnathan buys less than 10 units ofthis product, and py = $6 per unit if he buys 10 units of y or more (as an example, 20 unitsof y would cost $120). Assume that the price of x remains the same, at px = $10 per unit.Derive the equation of the budget line and draw it in a separate graph. (3 marks)(e) Using a new graph, find the optimal bundle(s) for the problem in part (d). In this new graph,show the budget line, the optimal bundle and corresponding indifference curve. Make sureto label carefully all the curves. (3 marks)