Question: Diana has utility function over goods X, Y that is given by U(X,Y) = XY 1. The prices and income are px 4, py

$Diana has utility function over goods ( X, Y ) that is given by ( U(X, Y)=X^{frac{1}{2}} Y^{frac{1}{2}} ). The prices a$

Diana has utility function over goods X, Y that is given by U(X,Y) = XY 1. The prices and income are px 4, py 16 and I = 160. If the government imposes a sales tax on good X that makes the price of X with the tax equal to p'x = 9. What is the new level of income that will keep Diana's utility unchanged? (a) 160 (b) 180 (c) 200 (d) 220 (e) 240 =

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