2. (10 points) Review of Consumer Behavior Please consider an individual that consumes two goods (X and Y) and has a Cobb-Douglass Utility Function of the form: U = .5 X-2 W3 The individual has income of 40, the price of Good X is 1 and the Price of Good Y is 2. a) What are the demand for Good X, the demand for Good Y, and the highest level of utility for this individual. b) Now consider an increase in the price of Good X to 2. What is the demand for Good X and Good Y? What is the Utility of the consumer following the price change? e) Considering the change in demand for each good between parts a) and b), how much is due to the substitution effect and how much is due to the income effect? (I) Show your answers on a graph