Name: Email ID Opsu.edu ECON302 TPS - Consumer Choice Suppose a consumer's utility function is given by U(X, Y) - XiY. Also, the consumer has $100 to spend. The price of X, Px = $10, and the price of Y, Py - $1. You may find that it helps to draw a graph to organize the information in this question. You may draw in the blank area on the front page of the assignment, but this graph will not be graded. a) How much X and Y should the consumer purchase in order to maximize their utility? b) What is the consumer's indirect utility function? c) How much utility does the consumer receive? ECON 302 TPS Page 2 d) Now suppose Px decreases to $5 while Py increases to $2. What is the new bundle of X and Y that the consumer will demand? e) What is the value of the compensating variation? () What is the value of the equivalent variation? g) Of the total change in the quantity demanded for both goods, how much is due to the substitution effect and how much is due to the income effect