Assume that a consumer faces the budget line AB and the price of X is Taka 20. All money spent after goods X enable him/her to buy 100 units while all money spent on Y enable him/her to buy 25 units of Y. Consumer’s income -----------The price of Y is Taka -------- The equation for the budget line AB is ……… What combination of X and Y does the consumer choose assuming that at utility maximum amount of X is 50 units X? Why? The marginal rate of substitution for this combination is ……………. OR: Explain the equal marginal principle and give an example

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