Question

Please explain step by step how to draw the Engel Curve for MacnCheese (M) on this question?

Thanks

(20 Points) Noah is a college student. He is really scraping by. He consumes two goods, which he considers to be imperfect substitutes. Mac'n Cheese from a box (M) and yoga lessons (L). The price of a box of Mac'n Cheese is SO.50 and the price per yoga lesson is $1.00. Using his weekly income of $5, Noah consumes five boxes of M and two and a half (2.5) L. Noah's grandma feels sorry for him and sends him a weekly check of s5, so his income is now $10 a week. He now consumes 7 M and 6.5 L. Finally, Noah goes ahead and gets a job, which gets him another $5 in weekly income. At this income he now consumes 4 M and 13 L. For this problem put M on the horizontal axis.

Answer 1

Engel curve is defined as locus of optimal Consumption of a good, as income is varied, keeping the prices of all goods unchanged.

Income	Consumption of good M
5	5
10	7
15	4

A 15 10 1 5 5,5) 24 5 6 t 8