Question: Question 1 Philip's quasilinear utility function is U = 491+92. His budget for these goods is Y = 10. Originally, the prices are p

Question 1 Philip's quasilinear utility function is U = 491+92. His budget for these goods is Y = 10. Originally, the prices are p = p2 = 1. However, the price of the first good rises to p = 2. (a) (10 points) Find q and q for the original and the new prices. (b) (20 points) Decompose the total change in consumption of good 1 into income and substitution effects.

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