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Question 1: Colins utility function for goods X and Y is represented by U(XY) = X0.5Y0.5 . Assume his income is $1000 and the prices of X and Y are $50 and S100, respectively. a. Write an expression for Colins budget constraint. b. Calculate the optimal quantities of X and Y that Colin should choose, given his budget constraint. Graph your answer. Suppose that government subsidy program lowers the price of Y from $100 per unit to $ 50 per unit. Calculate the optimal quantities of X and Y and show on the same graph in c. d. Calculate the impact of the subsidy program on Janices utility
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