consumer has $300 to spend on goods X and Y. The market prices of these two goods are P(x)=15 and P(y)=5.
A) What is the market rate of substitution between goods X and Y?
B) Illustrate the consumer's opportunity set in a carefully labeled diagram.
C) Show how the consumer's opportunity set changes if income increases by $300. How does the $300 increase in income alter the market rate of substitution between goods X and Y?
