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5-. Suppose a consumer's preferences mm goods :I.' and y are rational1 mono- tonic1 and conmex1 and that the consumer regards :1: and y as

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5-. Suppose a consumer's preferences mm goods :I.' and y are rational1 mono- tonic1 and conmex1 and that the consumer regards :1: and y as unrelated goods. Ivi'qfhich of the following must he true? {a} lGoods :1: and y follow the law of demand. [h] The price consumption curve [as the price of 1: changes] is horizontal. {e} The income consumption curve is horizontal. {d} The price consumption curve[as the price of 3,: changes] is horizontal. Ii. Tina's preferences over goods :1: and y can he represented by U[s,y} = sy2. Which of the following statements must be true of Tina's optimal bundle [mm] when the price of a: is P: and the prise of y is Pu? {a} 3131:: = Pyy {h} P131: = 3P3}; {e} nga: = Pyy {'1} P13 = EPyy

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