Question

- Suppose that Kate's utility function is: U(X,Y)= X²Y a. Graph the demand curve for X if income is equal to 30 and the price of Y is equal to 2.(Hint: solve for X as a function of Px, plugging in I = 30) b. What would happen to the demand curve for X (shift to right, shift to left, not change,or is there not enough information) if income were to decrease? Briefly explain. What would happen to the demand curve for X (shift to right, shift to left, not change,or is there not enough information) if the price of Y were to decrease?

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