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Charlotte spends her income of $2400 on clothing (good x ), and the composite good (good y ). The utility Charlotte receives from consuming a

Charlotte spends her income of $2400 on clothing (goodx), and the composite good (goody). The utility Charlotte receives from consuming a basket of clothing and the composite good is

U(x,y) = 2x + (y/300)

The corresponding marginal utilities are

MUx = 1/x and MUy = 1/300

Question: Findtheincomeandsubstitutioneffectsforthepriceincrease.Isclothinganormal good?

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