Micro-economics

Mr Borracho has a weekly income of €500 which he spends on two
goods, Chorizo (C) and Wine (W). Chorizo costs €4lkg and Wine costs
€4/litre. Reproduce the following diagram and answer the following:
Chorizo
<kgs>
Wine
(litres)
a) Identify the weekly budget constraint faced by Mr Borracho.
You should answer this part fully with the aid of a diagram.
b) Given Mr Borracho’s utility function for Chorizo and Wine of
U(C,W) = C + 2W
draw a selection of his indifference curves and identify the
combination of Chorizo and Wine that Mr Borracho will buy to
maximise his utility.
You should draw a selection of indifference curves as requested and
bring these together with the budget constraint identified in part (a).
While you will not be told what the correct answer is, you will be told
whether what you have drawn is incorrect. If it is incorrect, you will
obviously need to reconsider what you are doing.