A consumer wants to consume two goods. The prices of the two goods are Rs 4 and Rs 5 respectively. The consumer’s income is Rs 20.      (5 marks)

(i) Write down the equation of the budget line.

(ii) How much of good 1 can the consumer consume if he/she spends his/her entire income on that good?

(iii) How much of good 2 can be consumed if he/she spends his/her entire income on that good?

(iv) What is the slope of the budget line?