need help with c and d 1) Income and substitution effect (22 points) A consumer has the following utility function U(X,Y) XY Px 2 and Py 2, the daily income is $32 x 8,y 8 a) How many units of X and Y does she consumes each day (5 points) b) Suppose that the price of Y increases to $8 Find his new optimal consumption bundle (4 points) Y 8,Y 2 (c) If his income changes in a way that he can achieve exactly his initial utility level How many units of X and Y would he buy ( 8 points) I b4,7 1b i A) U(x,r) xr MAREHALIA B)py 8,Px 2cc) P 2 R 2I 32 DEMAND teen 32 28r MSS x vy T x P1Dx 32 165 swen y PN Px Y 2,then I PxX RYY PXPxRY RTr y 28 2 8 RF 2T 2 Y I 32,P 2 32 22y Y 8 r 8,r 2 8 2 8 1) Income and substitution effect (22 points) A consumer has the following utility function U(X,Y) XY Px 2 and Py 2, the daily income is $32 x 8,y 8 a) How many units of X and Y does she consumes each day (5 points) b) Suppose that the price of Y increases to $8 Find his new optimal consumption bundle (4 points) Y 8,Y 2 (c) If his income changes in a way that he can achieve exactly his initial utility level How many units of X and Y would he buy ( 8 points) I b4,7 1b i A) U(x,r) xr MAREHALIA B)py 8,Px 2cc) P 2 R 2I 32 DEMAND teen 32 28r MSS x vy T x P1Dx 32 165 swen y PN Px Y 2,then I PxX RYY PXPxRY RTr y 28 2 8 RF 2T 2 Y I 32,P 2 32 22y Y 8 r 8,r 2 8 2 8

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need help with c and d 1) Income and substitution effect (22 points) A consumer has the following utility function  U(X,Y) XY  Px 2 and Py 2, the daily income is $32  x 8,y 8 a) How many units of X and Y does she consumes each day  (5 points) b) Suppose that the price of Y increases to $8  Find his new optimal consumption bundle  (4 points) Y 8,Y 2 (c) If his income changes in a way that he can achieve exactly his initial utility level  How many units of X and Y would he buy  ( 8 points) I b4,7 1b i   A) U(x,r) xr MAREHALIA B)py 8,Px 2cc) P 2 R 2I 32 DEMAND  teen 32 28r MSS  x vy T x P1Dx 32 165 swen y PN Px Y 2,then I PxX RYY PXPxRY RTr y 28 2 8  RF 2T 2 Y  I 32,P 2 32 22y Y 8 r 8,r 2 8 2 8 1) Income and substitution effect (22 points) A consumer has the following utility function  U(X,Y) XY  Px 2 and Py 2, the daily income is $32  x 8,y 8 a) How many units of X and Y does she consumes each day  (5 points) b) Suppose that the price of Y increases to $8  Find his new optimal consumption bundle  (4 points) Y 8,Y 2 (c) If his income changes in a way that he can achieve exactly his initial utility level  How many units of X and Y would he buy  ( 8 points) I b4,7 1b i   A) U(x,r) xr MAREHALIA B)py 8,Px 2cc) P 2 R 2I 32 DEMAND  teen 32 28r MSS  x vy T x P1Dx 32 165 swen y PN Px Y 2,then I PxX RYY PXPxRY RTr y 28 2 8  RF 2T 2 Y  I 32,P 2 32 22y Y 8 r 8,r 2 8 2 8

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need help with c and d 1) Income and substitution effect (22 points) A consumer has the following utility function: U(X,Y)=XY. Px=2 and Py=2, the

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