Question 1 Consider a utility function, u(x, y) = x3y4. Assume income, I, > 0 a) Find the MRSx,y b) Set up the utility maximizing problem and solve for the uncompensated demand functions. c) Find the indirect utility function Question 2 Suppose a consumer has a utility function, u(x, y) = x1/2y1/2. Assume Px > 0, and Py = $1 A. Find the compensated demand functions B. Find the expenditure function for this consumer. C. Suppose there is a proposal to reduce the price of good x from Px = $2 to Px = $1 per unit. If the new utility enjoyed by the consumer after the price change is U = 100, what is the equivalent variation of this price change