Katie has preferences over goods x and y represented by the utility function: U(x,y)=[ax^k+(1-a)y^k]^1/k

where00. Katie's income is $10. Assume that px=1 and py=10.

a) Find Katie's optimal bundle.

b) Suppose that the price of x increases to p'x= 10 while the price of y stays the same (py= 10).

Compute the pure substitution effect and income effect. / Identify these effects in a graph after drawing the optimal choices before and after the price change (Hint: Draw Katie's indifference curves as if they were those under Cobb-Douglas utility)

c) Compute the compensating equivalent corresponding to this price change.

Note: please put some explanations.. thankkksss...