Morgan has the following utility function: u(x, y) = 5 ln(x) + 3y. Her income is given by I =15 and the prices originally are px=2 and py=3.

(a) What are Morgan's Marshallian demands?

(b) How much of each good is Morgan currently consuming?

(c) What is the utility level that Morgan can achieve?

(d) Assume the price of x increases to px = 4, find Morgan's new levels of consumption.

(e) Find the total, substitution and income effects for good x caused by the price change. Consider this price change a "large" price change (px = px px = 4 2 = 2).