Question: An individual has utility function U(x, y) = u(x) + y for some function 110:) which also obeys all of our typical assumptions for a

An individual has utility function U(x, y) = u(x) + y for some function 110:) which also obeys all of our typical assumptions for a rational utility function. In reality, though, x is a discrete item, such that the individual's consumption can only be x = 0 or x = 1. For convenience, assume that p3, = 1. a) Derive a mathematical expression for the range of values for 17,, that would lead to the individual choosing x = 1. - ' b) What is the indirect utility function associated with this individual? _

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