Question: Explain clearly.. A consumer derives utility from consuming goods X and Y according to U(X,Y) = X Y . This utility function implies MUx =

Explain clearly..

A consumer derives utility from consuming goods X and Y according to U(X,Y) = X Y . This utility function implies MUx = 3X Y and MUy = X . The consumer's income is 1,000 and the price of good X (Px) is 4, whereas the price of good Y (Pr) is 1. Given that the price of good X falls to 1, which statement is true regarding good X? O The substitution effect results in the consumer purchasing about 188 more units of good X. The income effect results in the consumer purchasing about 265 more units of good X. The total effect of the price change is an increase in the consumption of good X by 453 units. O The substitution effect results in the consumer purchasing about 78 more units of good X. The income effect results in the consumer purchasing about 485 more units of good X. The total effect of the price change is an increase in the consumption of good X by 563 units. O The substitution effect results in the consumer purchasing about 354 more units of good X. The income effect results in the consumer purchasing about 750 more units of good X. The total effect of the price change is an increase in the consumption of good X by 396 units. O The substitution effect results in the consumer purchasing about 78 more units of good X. The income effect results in the consumer purchasing 265 more units of good X. The total effect of the price change is an increase in the consumption of good X by 343 units

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