Suppose Larry's utility is dependent on two goods, rices and beans, utilty function for Larry is: U(R,B)=2ln(R)+3ln(B).

1. Larry only has $600 per month to spend on rice and beans. If the price of rice is $10 per bag and the price of bean is $60 per bag, what is Larry's utility maximizing quantity of rice and beans?

2. If the price of bean is $30 per bag now, what is Larry's new utility maximizing quantity of rice and beans?

3. On the same graph show the situation in quesion 1. and 2. Identify the income and substitution effects on the consumption of beans from the drop in price. (The beans should on the x-axis and the rice on the y-axis)