1) Suppose that Yoda's MU_X = Y² and MU_Y = 2XY. The price of good X is $10 and the price of good Y is $2. If Yoda is consuming 8 units of good X and 16 units of good Y, are they maximizing utility? Explain your answer.

2) For the following scenarios, explain the direction of the substitution effect, income effect, and total effect. I. The price of good X, a normal good, increases. II. The price of good X, an inferior good, decreases. III. The price of good X, a Giffen good, increases.