Calculate the slope of the budget line
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Problem 1: Consumer TheoryJulia likes to have waffles and orange juice for breakfast. Waffles cost $3.00 each and a glass of orange juice is $2.50. Shehas $15.00 to spend on breakfast. A.Draw a graph showing Julia’s budget set/constraint (i.e. her consumption set and frontier). Put the number of waffles on the vertical axis and the number of glasses of orange juice on the horizontal axis.Label the intercepts.(Use a ruler)B.Calculate the slope of the budget line you drew in part A – you do not need to show work. Provide an economic interpretation of this slope; i.e. What does the number you just calculated tell you about the problem Julia faces?(Suggested length – 1 to 2 sentences)C.The table below describes the marginal utility Julia receives from each waffle or glass of orange juice she could consume. Use this information to determine Julia’s optimal consumption bundle. You do not need to show any work
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