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Lee's preferences over pizza (X) and other goods (Y) are given by U(X,Y) = XY, with associated marginal utilities MUx =Y and MUy = X.

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Lee's preferences over pizza (X) and other goods (Y) are given by U(X,Y) = XY, with associated marginal utilities MUx =Y and MUy = X. His income is 120. (1) Calculate his optimal basket when Px =4 and Py = 1. (2) Calculate his income and substitution effects of a decrease in the price of food to 3. (3) Calculate the compensating variation of the price change. (4) Calculate the equivalent variation of the price change

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