IM’s utility function can be expressed as u(x, y) =?1/X + y and his monthly income is 10 DOLLAR. Given that price for X is P won and Y is 1 DOLLAR, please answer all the following questions as possible.
(1) Indicates the demand for X and Y as a function of P.
(2) Calculates the X point price elasticity of demand.
(3) When there are increases twice in the price of X and Y, and JIM’s income, consumption and preference of JIM never changed. This illustrates what?