Of course Max cannot consume a negative value of y, and he also cannot consume more than the maximum possible quantity of y, M/py. 6. Is is possible Max has a corner solution y = 0 ? How about a corner solution y = M/py ? If yes, for which values of prices and income are they possible? 7. Write down Max's optimization problem as a constrained optimization problem. 8. Write down the rst order conditions for Max's constrained optimization problem. 9. Use the implicit functions procedure on the rst order conditions to calculate the derivatives of Max's demand for good y with respect to M, p)( and py. Note: you have to calculate those partial derivatives without nding the demand for x or y