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Emily's preferences can be represented by u(x,y)=x1/4 y3/4 . Emily faces prices (px,py) = (2,1) and...

Emily's preferences can be represented by u(x,y)=x1/4 y3/4 . Emily faces prices (px,py) = (2,1) and her income is $120.

a) Her optimal consumption bundle is:________ (write in the form of (x,y) with no space)

Now the price of x increases to $3 while price of y remains the same

b) Her new optimal consumption bundle is:_______  (write in the form of (x,y) with no space)

c) Her Equivalent Variation is: $________

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