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Question 3 (20 minutes) Given your utility function of TU =10YX, the price of Y is $ 4, and the price of X is $8.

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Question 3 (20 minutes) Given your utility function of TU =10YX, the price of Y is $ 4, and the price of X is $8. Your parents are pleased with your academic performance and to encourage you to continue with the good work are giving you a bonus of $640. What is the impact of this bonus on your well heing? TU = 10YX (1) PY = $4 (2) Px = $8 (3) X Optimal combination of Y and X: Y and X (6 marks) Increase in well heing because of the gift. (6 marks)

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