Bobby-Sue will live only two years. She has two career choices. In the first she would earn $100 in year one and $440 in year two. In the second career, she would earn $410 in year one and $110 in year two. She can borrow or save at the same interest rate is 10% (i=10). If the careers are otherwise identical, which does she choose? Show with a graph of her budget lines showing how (formula) you derive the intercepts (endpoints).
a. (3) Devon has demand of $Q(p) = 5000 - 1000 \cdot P$. Currently $p = 3$. Graph the demand below, including end-points and the quantity demanded.
b. (5) The price increases to $4. Using consumer surplus analysis, derive (a dollar amount) how much she is harmed or benefits by this. Points for showing how you got the answer.