Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the price of good Y is $25. Mika's utility function for Good x and Good y is: U(x, y) = 2xy. Suppose the...

a. What is Mika’s initial basket when the price of a Good X is $10?

b. How much utility does this basket generate for Mika?
c. What is Mika’s final consumption basket when the price of Good X increases to $15?
d. Compute the values for the decomposition basket, B.

e. Determine the numerical values of the substitution and income effects and graph your

results.
f. Is Good X normal or inferior goods for Mika? How do you know?

Extracted text: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the price of good Y is $25. Mika's utility function for Good x and Good y is: U(x, y) = 2xy. Suppose the price of a Good X increases to $15.