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A consumer purchases two goods, food, and clothing

Economics

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A consumer purchases two goods, food, and clothing. The utility function is U(x, y] = xy, where x denotes the amount of food consumed and yr the amount of clothing. If income is $126, the equation of the demand curve for food is x = E126 (123,]. If income is $12G, when Pr = $3, the consumer buys i1_ units of I. When Pr = $9, the consumer buys _':'_units of x. As the price increases, the quantity demanded decreases. If the income rises to $240, the equation of the demand curve for food is x = sun "2%). If income is 52m, when Pr = $3, the consumer buys 40 units of x, and when E, = $9, the consumer buys 13.33 units of I. As income increases, demand for I increases. In this example, food is a normal good.