Ann consumes two goods, a and y. Her utility function is given by: u(x, y) = (x+1)G. The price of a is $4 per unit and the price of y is $ per unit. Ann's income is w. (a) * ) Nrite down an expression...

Extracted text: Ann consumes two goods, a and y. Her utility function is given by: u(x, y) = (x+1)G. The price of a is $4 per unit and the price of y is $ per unit. Ann's income is w. (a) * ) Nrite down an expression for Ann's budget line. (b) v- 'Determine the formula for Ann's marginal utility of a, and the formula for Ann's marginal utility of y. (c) ( » For each income level w > 0 calculate Ann's optimal consumption bundle. (d) For which income levels w is bang-for-buck equalization violated at Ann's optimal consumption bundle? Explain. , Assume that w = 2. Draw Ann's budget line in a figure with r on the hor- izontal axis. Add 2 indifference curves of Ann, including the indifference curve that contains Ann's optimal consumption bundle. Indicate Ann's optimal consumption (e) - bundle.