Consider a consumer with an income of M< (infinity) facing prices Pā=2 and p2 = 4 for commodities 1 and 2, respectively.
A) Write down the budget set of the consumer (call it D).
B) Is the set D compact? Why or why not. If you answer yes, indicate when piled for:
c) Is the budget set convex? Explain in detail.
(d) Suppose the price for commodity 2 decreases from to p2 > p2 = 3. Write down the new budget set for the consumer (Call it D')
e) Is D' c D? Explain
