Course: Introduction to Microeconomics Javier consumes 2 goods: rice and noodles. X represents 1 kilo of rice and, Y is 1 kilo of noodles, Px is the price of 1 kilo of rice and Py is the price of 1 kilo of noodles. In addition, R is your income. Javier's preferences can be represented by a Cobb-Douglas function: U(X,Y)=xay1a where 0 < a < 1. HELP: Javier knows that TMS(X,Y) = dY/dX, which is the slope of his indifference curves, is as follows: TMS=1aaxy a) Calculate Javier's Marshallian demands. b) What type of goods are X and Y? Explain c) Now consider that Px = 20, Py = 5, R = 100 and a = 1/3. Calculate the optimal consumption d) Suppose now that Px goes from 20 to 25. Calculate the new optimum. e) Find the values of Substitution Effect and Income Effect after the price change of good X. Please graph both effects before and after Px changes.