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2. Edie is very upset with Susan for burning down her house and demands to be compensated. Susan has to give Edie enough money to

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2. Edie is very upset with Susan for burning down her house and demands to be compensated. Susan has to give Edie enough money to reach utility level U" ( Edie has no money herself. .. It was all in the fire ) or Edie will tell the police. Edie's utility function is given by U=2x "ty where x is divorces and y is poker. a ) Calculate Edie's Hicksian demands for divorces and poker. (5pts) Derive Edie's expenditure function. (3pts) C) Derive Edie's indirect utility function. (4pts)

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