There are two goods in an economy: apples (a) and bananas (b). Price of an apple is $1 and price of a banana is $2. Your income is $10. Suppose your utility function is u(a, b) = 2a2 b+5 a. (8 points) How many apples and bananas will you consume? b. (4 points) Are a and b normal or inferior goods? c. (4 points) Are a and b substitutes or complements? d. (4 points) Draw the Engel curve for apples for the income levels ranging from $10, $20, $30 and so on.

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