Question: Regan's utility function for toothpaste (good x) and other stuff (good y) is u(x, y) = In x + y. Assume that p, =

Regan's utility function for toothpaste (good x) and other stuff (good y)

Regan's utility function for toothpaste (good x) and other stuff (good y) is u(x, y) = In x + y. Assume that p, = 1. Let M be her income. Derive her demand function for toothpaste. Is toothpaste a normal or an inferior good for Regan? Graph the Engel curve for Px = 1.

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