Question: 9. Suppose an individual's utility function is U = x 2 + y, and her total budget is $48. The price of y is always

9. Suppose an individual's utility function is U = x 2

9. Suppose an individual's utility function is U = x 2 + y, and her total budget is $48. The price of y is always $8, but the price of x increases from $1 to $2. Calculate the substitution effect on y and the income effect on x. a. SE= +2 y; IE= 0 x b. SE=+ly ; IE= - 12 x c. SE=+2 y; IE= - 12 x d. SE=+ly; IE=0 x

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