9. Problems 4.9 Suppose that we have a utility function involving two goods that is linear of the form U(x,y) Suppose ax + by. Hint: It may be helpful to draw yourself a diagram. What is true about the slope of the indifference curves and the slope of the budget constraint? This means the slope of the indifference curves are than the slope of the budget constraint. This implies that all of the consumers income is spent on good . Therefore, the demand function for a: is x and the demand function for y is y MUY Suppose Hint: It may be helpful to draw yourself a diagram. What is true about the slope of the indifference curves and the slope of the budget constraint? This means the slope of the indifference curves are than the slope of the budget constraint. This implies that all of the consumers income is spent on good . Therefore, the demand function for a: is x MUY MUY When , the expenditure function is E . However, when and the demand function for y is y , the expenditure function is E