Describe how (a) the optimal consumption bundle of an agent and (b) the optimal level of utility derived by the agent changes with changes in the underlying parameters of the following utility maximization problem.
• Utility function of the agent is u : R 2 + → R, with u(x, y) = x α y β , α > 0, β > 0.
• The agent faces prices px and py per unit of the two goods, respectively.
• The agent can spend at most M on purchasing a consumption bundle.