Assume that the data in the following table are an indifference curve for a consumer: a. graph this indifference curve and label "Quantity of Y" on the vertical axis and Quantity of X" on the horizontal axis. Label the points A-D. b. Assume the consumer's budget is $12 and the price of X and Y are $1.00 and $1.50, respectively. Draw the budget line in the above graph. c. what combination of X and Y will the consumer purchase?

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Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.