Indifference Curve and Budget Line (8%) Annie has an income of $180 an hour. Popcorn costs $6 a bag, and costs $4 a six-pack cola a.

Indifference Curve and Budget Line (8%)

Annie has an income of $180 an hour. Popcorn costs $6 a bag, and costs $4 a six-pack cola

a.  Draw a graph of Annie's budget line with six-pack of cola on the x-axis, and

popcorn on the y-axis. (2%)

b.  What is the slope of Annie's budget line (1%)? What could this slope be also called? (2%)

c.  If we know that Annie maximizes her utility with the purchase of 12 bags of popcorn, how many six-pack cola she will purchase?-(an estimate from a graph) (1%), draw an indifference curve reflecting this optimum. (2%)