4.1 Each day Paul, who is in third grade, eats lunch at school. He likes only Twinkies (7") and Orange Slice (5), and these provide him a utility of utility = U{T, S) = V7X

a. If Twinkies cost $.10 each and Slice costs $.25 per cup, how should Paul spend the $1 his mother gives him in order to maximize his utility?

b. If the school tries to discourage Twinkie consumption by raising the price to $.40, by how much will Paul's mother have to increase his lunch allowance to provide him with the same level of utility he received in part

(a) ? How many Twinkies and cups of Slice will he buy now (assuming that it is possible to purchase fractional amounts of both of these goods)?