Suppose a consumer's utility function is given by U(X,Y) = MIN (3X, Y).Also, the consumer has $36 to spend, and the price of Good X, P_X= $1.Let Good Y be a composite good (Good Y is the "numeraire") whose price is P_Y= $1.So on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X.

a) (2 points) How much X and Y should the consumer purchase in order to maximize her utility?

b) (2 points) How much total utility does the consumer receive?

c) Now suppose P_Xincreases to $3.

i) (6 points) Calculate the Compensating Variation:

CV = _____________________

ii) (6 points) Calculate the Equivalent Variation:

EV = _____________________