A given Family consumes only fish (x) and chips (y) and has a monthly income of £80. In March Family bought 15 fish at a price of £4 and 10 portions of chips. Family neither saves, nor borrows money, and the prices of the goods are constant over time. * a. Write down the equation for the budget line of Family. b. Suppose the utility function of Family is given by the function: U(x, y)=x45045. Does the aforementioned combination of the two goods constitute an equilibrium? If not, then what is the optimal bundle for her? Explain. c. Present this situation on a diagram.
