Question: 4. Janet has preferences represented by a utility function u = X 2 + y 2 . Her income is $100 and the price of

4. Janet has preferences represented by a utility function u = X 2 + y 2 . Her income is $100 and the price of each good is $1. (a) Acting as a mechanical nincompoop, compute the point on the budget line where the indifference curve is tangent to the budget line. (b) Now draw the indifference curve through this point and use it to argue it is not optimal. What is wrong, or non-standard about the indifference curve?

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