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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 +y where x is divorces and y is poker. Calculate Edie's Hicksian demands for divorces and poker. (5pts) Derive Edie's expenditure function. (3pts) c) Derive Edie's indirect utility function. (4pts) d) Suppose Susan has $100. The price of x is $2 and the price of y is $4 and

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