Suppose David spends his income (I) on two goods, x and y , whose market prices are p x and p y , respectively. His preferences are represented by the utility function u ( x;y )…

Suppose David spends his income (I) on two goods, x and y , whose market prices are p x and p y , respectively. His preferences are represented by the utility function u ( x;y ) = lnx + 2 lny ( MU x = 1 =x;MU y = 2 =y ). a. Derive his demand functions for x and y . Are they homogeneous in income and prices? b. Assuming I = $60 and p x = $1 , graph his demand curve for y . c. Repeat part (b) for the case in which p x = $2