Question: Let the consumer's utility function be given by u(x, y) = xy. a) Let Px = Py = 1. Let I = 30. Calculate x

Let the consumer's utility function be given by u(x, y) = xy. a) Let Px = Py = 1. Let I = 30. Calculate x and y. What utility level is attained by the consumer in this case? b) Again let Let Px = Py = 1. Let I = 30. Calculate the income and substitution effect when the price of x changes from 1 to 0.5.

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