Question: Can anyone help with this econ question? l. (24 Total Points] Suppose a consumer's utility function is given by UGLY] = X13*Y13_ Also, the consumer

 Can anyone help with this econ question? l. (24 Total Points]Suppose a consumer's utility function is given by UGLY] = X1"3*Y1"3_ Also,

Can anyone help with this econ question?

the consumer has $13 to spend, and the price of Good X,P); = 951. Let Good Y be a composite good whose price

l. (24 Total Points] Suppose a consumer's utility function is given by UGLY] = X1"3*Y1"3_ Also, the consumer has $13 to spend, and the price of Good X, P); = 951. Let Good Y be a composite good whose price is Par: $1. So on the Yaxis, we are graphing the amount of money that the consumerhas available to spend on all other goods for any given value of X. a) {2 points) Hov.r much X and Y should the consumer purchase in order to maximize her utility? h) (2 points) How much total utility does the consumer receive? c} (2 points} Now suppose P); increases to $9. What is the new bundle of X and '1' that the consumer will demand? d) (2 points} How much additional moneyr would the consumer need in order to have the same utility level after the price change as before the price change? (Note: this amount of additional money is called the Compensating Variation.) Compensating Variation = e) {2 points) (If the total change in the quantityr demanded of Good X, how much is due to the substitution effect and how much is due to the income eect? (Note: since there is an increase in the price of Good X, these values will be negative]. 1] {14 points) In the space below, draw on a graph the I original budget constraint (draw this in black) I neu-r budget constraint [draw this in green} I compensated budget constraint (draw this in red} Also, on your graph. indicate the optimal bundle on each budget constraint. I Label the optimal bundle on the original budget constraint X\" and Y\" I Label the optimal bundle on the newr budget constraint X" and Y\" I Label the optimal bundle on the compensated budget constraint X": and Y5 In order to receive ill credit, F011! graph must be neat? accurate. and full}.r 1abeled!1

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