Question 5 Consider a consumer that consumes hamburgers (let x1 denote the quantity of hamburgers con- sumed), and french fries (let 12 denote the quantity of french fries consumed). The consumer's utility function is U (x1, 12) = 2In (11) + 41 (12). The consumer also faces the following budget constraint piri + 12 = I, where p1 > 0, p2 = 1 and 1>0. 1. Formulate the Consumer maximization problem. Derive an expression for the optimal values of $1, To in terms of p, and I. 2. If p1 = 5, p2 = 1 and I = 30. What would be the consumer's optimal choice? What is the utility at this choice? 3. Now suppose that a subsidy on hamburgers results in an decrease in the price of hamburgers from p1 = 5 to p1 = 2. What would be the consumer's optimal choice at the new prices? What is the utility at this choice? 4. What is the size of the Substitution Effect on good 1 from this subsidy? 5. What is the size of the Income Effect on good 1 from this subsidy