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1. (24 total points) Suppose a consumer's utility function is given by HM = XI'Z'YI'Q. Also, the consumer has $72 to spend, and the price of Good X, Px = $4. Let Good Y be a composite good whose price is Pr = $1. So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X. a) (2 points) How much X and Y should the consumer purchase in order to maximize her utility? b) (2 points) How much total utility does the consumer receive? c) (2 points) Now suppose Px increases to $9. What is the new bundle of X and Y that the consumer will demand? d) (2 points) How much additional money would the consumer need in order to have the same utility level after the price change as before the price change? (Note: this amount of additional money is called the Compensating Variation.)