Question: Please answer i and m 1. Harpo's preferences are described by the utility function, U(x, y) = xy. Harpo's income is I and he can

Please answer i and m

Please answer i and m 1. Harpo's preferences are described by the

1. Harpo's preferences are described by the utility function, U(x, y) = xy. Harpo's income is I and he can buy the goods at prices Px and Py, respectively. a. Find Harpo's uncompensated (ordinary) demand functions for x and y. b. Use your answer to (a) to find Harpo's indirect utility function. c. Use your answer to (b) to find Harpo's expenditure function. d. Use your answer to (c) to find Harpo's compensated demand functions for x and y. e. Find Harpo's chosen bundle when I = 40, Px = 1, and py = 1. f. Find Harpo's utility level at the bundle in (e). g. Find Harpo's chosen bundle when I = 40, Px = 4, and Py = 1. h. Find Harpo's utility level at the bundle in (g). i . How much income does Harpo need to achieve the utility level in (e) at the prices in (g)? j. What bundle would Harpo choose with the income in (i) and the prices in (g)? k. What is the total effect on quantities demanded of x and y from the increase in the price of good x from Px = 1 to Px = 4 (with py = 1 and I = 40)? 1. What is the substitution effect on quantities demanded of x and y from the increase in the price of good x from Px = 1 to Px = 4 (with py = 1 and / = 40)? m. What is the income effect on quantities demanded of x and y from the increase in the price of good x from Px = 1 to Px = 4 (with py = 1 and / = 40)

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