Question: Please show all work. Thanks! Problem 3 Consider a market with two goods with the following utility function: U = 20.970.1 Let's assume you face

Please show all work. Thanks!

Problem 3 Consider a market with two goods with the following utility function: U = 20.970.1 Let's assume you face a price of $9 for good X and a price of $5 for good Y. Your income is currently $100. (a) What is the marginal rate of substitution? (b) How much of good r and y are bought? (c) Now suppose that the price of good x decreases to $3. Now what is the optimal bundle consumed? (d) Calculate the decomposition bundle. (e) Find the Income Effect, Substitution Effect, and Total Effect

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