Exercise 2
Elmer's utility function is \( U(x, y)=\min \left\{x, y^{2}\right\} \)
a. What is Elmer's utility if he consumes 4 units of \( x \) et 3 units of \( y ; 4 \) units of \( x \) et 2 units of \( y ; 5 \) units of \( x \) et 2 units of \( y \) ?
b. What is Elmer's budget line equation when the price of good \( x \) is 1 , the price of good \( y \) is 2 and his income is 8 ?
c. What is his optimal bundle at these prices and income?
d. Suppose that the price of good \( x \) is 10 , the price of good \( y \) is 15 and Elmer buys 100 units of \( x \). What is his income?