The following questions (7 to 10) refer to the following scenario: An individual has an income...

  

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The following questions (7 to 10) refer to the following scenario: An individual has an income of $267 to buy two goods (X, Y). The price of X is $3 and the price of Y is $3. His utility function is given by U(X,Y)= X(Y + 1)² You are also told that his marginal utilities are MUX = (y + 1)² MUY = 2X(Y + 1) 7. Find the optimal consumption bundle of good X and Y (Point A) 8. Find total utility of this consumer at the optimal consumption bundle 9. Because of Corona pandemic, the price of good X has doubled. Find the substitution effect (SE) of good X.is Hint: use only one decimal number 10. What is the income effect, and the relationship between the two products The following questions (7 to 10) refer to the following scenario: An individual has an income of $267 to buy two goods (X, Y). The price of X is $3 and the price of Y is $3. His utility function is given by U(X,Y)= X(Y + 1)² You are also told that his marginal utilities are MUX = (y + 1)² MUY = 2X(Y + 1) 7. Find the optimal consumption bundle of good X and Y (Point A) 8. Find total utility of this consumer at the optimal consumption bundle 9. Because of Corona pandemic, the price of good X has doubled. Find the substitution effect (SE) of good X.is Hint: use only one decimal number 10. What is the income effect, and the relationship between the two products