Question: Given U = X4Y4; PX = 80; Py = 100; I = 800 a. Solve for X, Y, and U*. b. Suppose income decreases to

and U"? c. Illustrate the income consumption curve, as well as separate

Given U = X4Y4; PX = 80; Py = 100; I = 800 a. Solve for X", Y", and U*. b. Suppose income decreases to 400, what will be the new values of X*, Y*, and U"? c. Illustrate the income consumption curve, as well as separate Engel curves for X and Y.

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