l" u---_...J 3. Suppose that Bob's preferences can be represented by the utility function u(x, y) = 32X0'5 + y. The MUx = 16m?\"5 and MUy = 1. (a) Determine Bob's demand functions for X and y. [5 points] [b] If the price ofx is $8, and Bob's income is $1000, how many x would Bob consume? How much income would be devoted to spending on y? [5 points] {c} Suppose that the price of x doubles to $16. Calculate the income and substitution effects. [5 points) (d) Is x a normal or inferior good? ls y a normal or inferior good? [5 points] (e) Calculate the compensating variation and change in CS associated with the price change. [5 points]