Question: I need a econ help here! I. (24 Total Points) Suppose a consumer's utility fi_mction is given by = Also, the consumer has SIStc vend,

I need a econ help here!

I. (24 Total Points) Suppose a consumer's utility fi_mction is given by= Also, the consumer has SIStc vend, and the price of GoodX, Let Good Y be a composite good price is PY =So on the Y-axis: we the of monev that the consumer has

I. (24 Total Points) Suppose a consumer's utility fi_mction is given by = Also, the consumer has SIStc vend, and the price of Good X, Let Good Y be a composite good price is PY = So on the Y-axis: we the of monev that the consumer has available to spend on all other goods for any given value of X. a) (2 points) How much X and Y should the consumer purchase in order to maximize her utility? b) (2 points) How much total utility does the consumer receive? c) (2 points) N cnv suppose Px Increases to Sg_ V,mat the new bundle ofX and Y that the consumer will d) (2 points) How much additional money would the consumer need in order to have the game utilitv 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) Ofthe total change in the quantitv demanded of Good X, hcnv much is due to the suhstitution effect and hcnv much is due to the income effect? (Note: since there an increase m the price of Good X: thee values be negative).

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