Final answer:
Ahmad's utility function is quasilinear, combining a logarithmic function for good X and a linear function for good Y. The optimal consumption bundle and ordinary demand functions require solving the utility maximization problem, which involves calculus given the budget constraint. For specific prices and income, the optimal bundle can be found by equalizing the marginal utility per dollar spent for both goods.
Step-by-step explanation:
Ahmad's utility function is U(X, Y) = 4 ln(X) + 6 Y. This function illustrates his preferences for two commodities, X and Y.
a) The type of the utility function is a quasilinear utility function due to the presence of a logarithmic term for one good and a linear term for the other.
b) To determine the optimal consumption bundle given the budget constraint PxX + PyY = M, we would normally set up the Lagrange function and use calculus to find the optimal amounts of X and Y that maximize utility subject to the budget constraint. However, specific values for prices and income are required for the exact calculation.
c) Ahmad's ordinary demand functions for commodities X and Y would relate the quantities demanded of each good to their respective prices and his income. These functions are derived from the utility maximization problem.
d) With an income M = 100 and prices Px = Py = 1, Ahmad's optimal consumption bundle can be calculated by equating the marginal utility per dollar spent for both goods which gives the condition 4/X = 6. After finding the optimal value for X, we can substitute it into the budget constraint to solve for Y.
e) This optimal bundle reflects Ahmad's preferences between commodities X and Y given his budget. Due to the quasilinear nature of the utility function, we can expect that changes in income will affect the consumption of good Y linearly while the effect on good X is more complex due to the diminishing marginal utility property of a logarithmic function.