Question: intermediate econ if anyone has any idea on how...
Intermediate Econ - If anyone has any idea on how to do this problem set, can you show work or explain how you got answer if possible, thanks!
1. Jack has the utility function
u(x, y) = 2x+√y. He is indifferent between two allocations. The first allocation gets Jack 3 of x and 4 of y. The second allocation gets Jack z of x and 9 of y.
(a) What is z?
(b) If Jack is offered the choice between other first allocation and the allocation 0 of x and 49 of y which will he choose?