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8- Aye has a budget of 5000 TL to...

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Accounting

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8- Aye has a budget of 5000 TL to buy winter clothes. She needs sweaters and shoes. Suppose that 1 pair of shoes costs 500TL and 1 sweater costs 250TL. a- Draw Aye's budget line with intercepts and determine the slope of the budget line. b- Draw a graph with indifference curves as shown in the lecture and show the optimal consumption bundle. c- Suppose prices have changed, shoes cost 1000TL and sweaters cost 500TL. Repeat part a. d- What happens to Aye's shopping amount of shoes and sweaters after the change? e- Suppose in addition to part c that Aye's budget has become 6000TL. Repeat part a. f- What happens to Aye's shopping amount of shoes and sweaters in part c after the change in part e? g- On the same graph in part b, show the optimal consumption bundles of parts d and

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