Assume a consumer has preferences that satisfy the A1-A4 (all 4 of our axioms of consumer choice). The price of good x is Px=10 for the first 5 units of x and is Px=5 for the any additional units of x above 5. The consumer's income is $100. The price of good y is Py =10 for the first 5 units of y and is Py=5 for the any additional units of y above 5.
1. Illustrate the consumer's budget constraint.
2. Discuss, Is it possible for this consumer to have multiple utility maximizing bundles? If yes draw a possible indifference curves demonstrating this.