Question: 2. Dom's utility function is u(1, 12) = 142. The price of good 1 used to be $1 per unit and the price of good

2. Dom's utility function is u(1, 12) = 142. The price of good 1 used to be $1 per unit and the price of good 2 used to be $2 per unit. His income was $40 per day. If the price of good 1 increased to $2.25 and the price of good 2 fell to $1.25, then in order to be able to just afford his old bundle, Dom would have to have a daily income of a. $57.50 b. $116 C. $28.75 d. $86.25 e. $230

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