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For each of the following situations, draw the consumer's budget constraint, indicate the optimal bundle on the graph, and accurately draw the indifference curve that runs through the consumer's optimal bundle. Be sure to carefully label your graph.
a) U(X,Y) = XY2. The consumer has $24 to spend and the prices of the goods are PX = $2 and PY = $4. Note that the MUX = 2XY and the MUY = X2.
How do I draw the graph?
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