# loui's preferences over pizza (x) and other goods (y) are given by U(X,Y)=XY^2, with associated marginal utilities. his income is $240. question d @) calculate his optimal basket when Px=8 and Py=1. b) calculate his income and substitution effects of a decrease in the price of food to$6. c) calculate the compensating variation of the price change.  d)calculate the equivalent variation of the price change.

Question

loui's preferences over pizza (x) and other goods (y) are given by U(X,Y)=XY^2, with associated marginal utilities. his income is $240. question d @) calculate his optimal basket when Px=8 and Py=1. 1. b) calculate his income and substitution effects of a decrease in the price of food to$6.
2. c) calculate the compensating variation of the price change.
3. d)calculate the equivalent variation of the price change.