6. Linda's preferences over corn oil (x) and olive oil (y) can be represented by the following utility function: Mm) = LVVX + SIM/y where both corn oil and olive oil are measured in gallons. a) If the price of corn oil is Eper gallon, the price of olive oil is ELPEI' gallon and she has I dollars to spend then find Linda's demand functions for corn oil and olive oil. b) Suppose that If: 51, a: $9 and l = 550. Using your answer to (a) find Linda's demands for corn oil and olive oil. Illustrate your answer in an indifference curve diagram. Include in your diagram an indifference curve through her best bundle. The BugAmericon! lobbying group wants to discourage Americans from buying foreign cooking oils, in particular olive oil. Knowing that lower prices encourage consumption of a good, the group lobbies Congress to provide a subsidy 5.5 per gallon on corn oil thereby lowering the price of corn oil to 5.5 per gallon. c) What are Linda's new demands for corn oil and olive oil? Illustrate the effect of the subsidy in your diagram for part (b). In your illustration be sure to clearly label the substitution and income effects. Note that you do not have to calculate the location of the \"substitution point\". You must indicate its approximate location. d) Did the subsidy of corn oil achieve the ends of the BuyAmericon! to lower demand for olive oil? Use your substitution and income effects to explain your