Question: Please show all steps and derivations. Make sure that your graphs and all their axes are correctly and neatly labelled. Q . Lucy works in

Please show all steps and derivations. Make sure that your graphs and all their axes are correctly and neatly labelled.
Q. Lucy works in her family farm and gets paid $M. The only goods that she consumes are rice () and wheat (w). Her utility function for these two goods is given as:
Ur, w)= In(r -1)+ w
a. What is Lucy's MRS for rice and wheat?
b. If the price of rice is denoted as P, and the price of wheat is denoted as Pw, derive Lucy's demand functions for rice and wheat (Hint: consider all possible cases of prices and income)
c. IfM= $5, P,=1, and Pw =3, what is the quantity of rice and wheat that will maximise her utility? Graphically illustrate Lucy's budget line, indifference curve and the optimal bundle in this case.
d. Considering prices to be the same as part (c) above, graphically illustrate Lucy's Engel curve for rice. Make sure to mark its slope.

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