5.5 Suppose the utility function for goods x and y is given by utility = U(x, y

) = xy + y.

a.

Calculate the uncompensated (Marshallian)

demand functions for x and y, and describe how the demand curves for x and y are shifted by changes in I or the price of the other good.

b.

c.

Calculate the expenditure function for x and y.

Use the expenditure function calculated in part (b)

to compute the compensated demand functions for goods x and y. Describe how the compensated demand curves for x and y are shifted by changes in income or by changes in the price of the other good.