Question: 6.) Given the following information: utility function U(x,y)=4X 0.5 Y 0.5 , price of good X is N$5, the price of good Y is N$10

6.) Given the following information: utility function U(x,y)=4X^0.5 Y^0.5, price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.

What is the level of utility when the price of good X is N$2.5 and the price of good Y is N$10,00.

7.) Given the following information: utility function U(x,y)=4X^0.5 Y^0.5, price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.

What is the change in quantity demanded of good X which is associated with the substitution effect when the price of good X decreases from N$5 to N$2.5?

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