d. U = XY U = / m 2 PX 12 PY 4 Pa Py Substitute the values, 900 = M2 4 ( 2 ) ( 2 ) m 2 = 900 (16) m = 120 m = 144, Px = 2, Py = 2 X = 144. = 36 2 (2) Y = 144 = 36. 2 ( 2 ) final bundle, M= 180, PX = 2 , Py = 2 X = 45, 4= 45 ( refer pasto). Intial bundle -(20,45) Final bundle - (us, us) (party). be composition. - bundle (36: 36 ) (partd ) Income effect= final-decomposition. = 45-36-9 Substitution effed = 36-20 = 16. Total effect = Final-Initial 45-20= 25 When PX falls, 25 more units are bought income effect = 16. substitution effect = 9 25