How do i do part C, D AND E? Rita has a budget of £600 to spend on theatre tickets (X) and on restaurant meals (Y).Each theatre ticket is priced at £60 (denoted by Px), whereas the price of a restaurantmeal (Py) is £30. Her utility function is U(X, Y) = 8\X + Y, which gives marginal utilitiesMUx4and MUy = 1. Her indifference curves are convex to the origin.VX(a) Find the equation of Rita's budget line. Explain how Rita decides to spend herbudget with the aid of a diagram.(b) Find the number of theatre tickets and restaurant meals Rita purchases.(c) Rita receives a pay rise and so increases her budget for theatre tickets andrestaurant meals to £660. Find the number of theatre tickets and restaurantmeals Rita now purchases.(d) For Rita are theatre tickets and restaurant meals normal goods, inferior goods ornot associated with income?(e) Suppose the price of restaurant meals falls. How do you expect Rita's demandfor theatre tickets to change? Explain with reference to substitution and incomeeffects.

Since you have asked multiple questions, we will solve Part (c) and (d) for you. Given, The…

Rita has a budget of £600 to spend on theatre tickets (X) and on restaurant meals (Y). Each theatre ticket is priced at £60 (denoted by Px), whereas the price of a restaurant meal (Py) is £30. Her utility function is U(X,Y) = 8vX + Y, which gives marginal utilities MUX = and MUy = 1. Her indifference curves are convex to the origin. 4