Assume that preferences are given by U(X,Y)=X*Y X is a good with price P and Y is calls the "compound good" with price equal to 1 (Py = 1). For given income M and prices, the best basket will be M X: 2P y= 2 Assuming now M = 120 and P = 4, so X = 15 and Y = 60. From the above information, determine the INCOME EFFECT, SUBSTITUTION EFFECT and TOTAL EFFECT when price of X increases to P = 16. Graph your results. NOTE: this exercise has already been solved, but I had some doubts about it. Please, I need a clear step by step calculation. Thank you van: much