Consider a simple quasi-linear utility function of the form.

(a) Derive (the Marshallian or uncompensated) demand functions for both x and y;

(b) Compute the indirect utility function and the expenditure function for this case;

(c) Use the expenditure function derived in part (b) and Shephard's lemma to compute the Hicksian or compensated demand function for good y.

(d) Using the results from (a) and (c), demonstrate that, for good y, the Slutsky equation holds.