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Suppose a consumer has the utility function u(x, y) = x + y. a) In a...

Suppose a consumer has the utility function u(x, y) = x + y.

a) In a well-labeled diagram, illustrate the indifference curve which yields a utility level of 1.

(b) If the consumer has income M and faces the prices px and py for x and y, respectively, derive the demand functions for the two goods.

(c) What types of preferences are associated with such a utility function?

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