l. Edith's preferences over donuts (x) and croissants (y) can be represented by u(x,y) = min[2x,y]. 3) b) C) d) The book derives the equality anx + Glyn), = 1 where Q = Find Edith's Marshallian demand functions for donuts and croissants. If PX = 2, P3, = 3 and I = 80 then how many donuts and croissants does she buy? Illustrate your answer in a diagram. If income rises to 88, then what will be her new best bundle? Illustrate the new budget line and best bundle in your diagram. Calculate the income and the own price elasticity of Edith's demand for donuts. Write your answer as functions of prices and income only PIX is the share of income spent on the x good and 11,; is the income elasticity of the x good, donuts (similarly 6,, and 11,. are the share of income and the income elasticity of the y good, croissants. 6) f) g) h) 1') Use your income elasticities above to verify that this expression holds for Edith's demands. 66x )? 61 If 1],;