Tom has $2000/wk of income to spend on 2 goods.
U(X,Y) = 10X + 8Y
a. Derive the demand schedules for X and Y.
b. Determine the values for X and Y that maximize utility when PX = 40 and PY = 50.
c. Determine the change in demand when PX increases to 80.
d. Determine the exact amounts of the income and substitution effects for X.
e. Repeat 2.a-d when the utility function