Suppose you have an income of $24 and the only two goods   you consume are apples (x1) and peaches (x2). The price of apples is $4 and the price of peaches is $3. Suppose that your optimal consumption is 4 peaches and 3 apples.   a. Illustrate this in a graph using indifference curves   and budget lines.   b. Now suppose that the price of apples falls to $2 and   I take enough money away from you to make you as happy   as you were originally. Will you buy more or fewer   peaches? Provide a graphical representation.

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