Consider a consumer with the utility function U(X, Y) = X2 Y2 . This consumer has an income denoted by I which is devoted to goods X and Y. The prices of goods X and Y are denoted PX and PY. Income = 100 Py = 5 Px = 10 f. Show that the demand for good X is unit elastic (use the point elasticity formula). g. Show that the income elasticity for good X is equal to 1 (use the point elasticity formula).

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