Assume that John consume only x and y and his utility is U(x, y)=(x-2)0.8 y0.2. If he has m dollars and faces px and py, obtain his optimal consumption bundle. The demand functions are Question 14Answer a. x=0.8(m-px)/px+1 and y=(0.2)(m-px)/py. b. x=0.8(m-px)/px and y=(0.2)(m-px)/py+1. c. x=0.8(m-px-py)/px+2 and y=(0.2)(m-px-py)/py. d. x=0.8m/px and y=0.2m/py. e. x=0.8(m-2px)/px+2 and y=(0.2)(m-2px)/py