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Bob’s preferences over biscuits (x) and other goods (y) are given by . His income is...

Bob’s preferences over biscuits (x) and other goods (y) are given by . His income is 10. a. Find Bob’s demand for x when the price of y is 2 b. When the price of x increases from 1 to 3, calculate the change in consumer surplus. Draw a graph to illustrate.

Bob’s preferences over biscuits (x) and other goods (y) are given by U(x,y)=xy. His income is 10.
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