not use ai please Suppose David spends his income (I) on two goods, x and y, whose marketprices are px and py, respectively. His preferences are represented by the utility12function u(x, y) = Inx + 2lny (MUx=MUyx=).a. Derive his demand functions for x and y. Are they homogeneous inincome and prices?b. Assuming I = $60 and px = $1, graph his demand curve for y.c. Repeat part (b) for the case in which px = $2

To solve this problem, we can follow these steps:Part (a): Deriving the Demand Functions1. **Utility…

Answered: Suppose David spends his income (I) on…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 6P

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Answer typed .
I need it in words not handwritten and don't copy from other place pleaseee do itttt your own solution
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the second part of the question

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