1. Assume that Sophia has $1000 per month to spend between dinners at a Thai restaurant and evenings at MECA, a local club. Assume that going to MECA costs $200 and eating at the Thai restaurant costs $100.
i. Draw Sophia’s budget constraint. Restaurants on the Y axis.
ii. Assume that Sophia’s income rises and she can now spend $2000 per month. Draw her new budget constraint in relation to the old.
iii. Suppose the
2.The market for chicken is shown below.
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