A. Draw an indifference map for person J with three indifference curves for two good s, Good A and Good T-setting Bundle T on the vertical axis.
B. Draw a budget line that is tangent to the middle indifference curve and identify on the two axes the optimal quantity consumed of Good A and Good T as A1 and T1*. C. Without moving your indifference curves, return to your "map" in 4 A and change the budget line if the price for Good A decreases from p1 to p2. Label the new budget line B-2 and identify on the two axes the new optimal quantity consumed of Good A and Good T as A2* and T2*
D. Construct a 2-point demand curve for person J for Good A. E. Without moving your indifference curves in 1 A and 1C, change the budget line if Person J's income decreases. Label the new budget line B-3 and identify on the two axes the new optimal quantity consumed of Good A and Good T as A3* and T3* F. Return to the 2-point demand curve for person J for Good A in 1D and change the diagram as a result of the decrease in income.