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Questions 1 Fill in the blank: You want to graph the Engel curve for good y....

Questions 1 Fill in the blank: You want to graph the Engel curve for good y. The variable on the horizontal axis of this graph will be and the variable on the vertical axis will be .

Question 2 In words, interpret the income elasticity of demand for cereal being equal to 1.5. (Hint: your answer should include a %).

Question 3 For the utility function U(x, y) = 8ln(x) + 2y, solve for individual demand for goods x and y.

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