Question: Slutsky.Consider a consumer with utility function U ( x , y ) = 2 xy . Her income is I = 1 5 , andprices

Slutsky.Consider a consumer with utility function U (x, y)=2xy. Her income is I =15, andprices are given by px =2, and py =3. Address the following questions:a) Find the demand functions.b) Find the optimal bundle.c) Find the price elasticity of good yAssume the price of good x increases up to px =3.d) Find the income effect, the substitution effect and the total effect.e) Determine whether the good x is normal or inferiorf) Determine whether the good x is a Giffen goodg) Are goods x and y substitutes, complements, or independent goods?

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