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Question 4 (15 points} Let U(x,y) = x + lay. a. Are preferences homothetic'? Why or why not? b. Find Marshallian demand for goods it and y. c. Demonstrate that the elasticity of substitution is either constant or not. d. Construct the indirect utility function. Now suppose that I = 2 and P1 = P3, = 1. e. Suppose there is a per-unit tax on x of size 1: = 0.6 so that, from the consumer's perspective, A\"Jr becomes 1.6. What revenue does the government generate from the consumer? What is the new level of indirect utility? f. Using the revenue you calculated in part (e)1 suppose instead the government takes away income directly (I' = I R = 2 R}. Calculate the new indirect utility and compare it to the answer from part (e)