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  3. please answer question 2...

Question: please answer question 2...

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Please answer question 2
uestion 1) 2 points . Suppose a person wants to allocate income () between two products H (on the horizontal axis) and S (on the vertical axis) are given: PH-1:Ps-8:1-100: a. Write the equation of the budget line b. Compute the horizontal intercept&write the interpretation of it c. Compute the vertical intercept& write the interpretation of it d. Compute the slope and write the interpretation of it Question 2) 2 points .Consider information in question 1 to be the baseline scenario. Now we want to create two changes and compare them to the baseline scenario Scenario 1 Government imposes a $0.50 tax on the per unit price of product H Scenario 2 The producers give a discount of $0.30 to consumers if H is purchased more than 60 units a. Find the equation of the budget line, slope, horizontal intercept, vertical intercept for b. scenario 1 Find the equation of the budget line, slope of Budget Line scenario 2 Draw two graphs: Graph 2.1 compares the baseline budget constraint to scenario 1 and Graph 2.2 compares the baseline budget constraint to scenario 2 c.
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