Question: James has utility function ( !, ) = ( ! + and income = 50. The price of Good 1 is 5 and the

James has utility function ( !, ") = ( ! + " and income = 50. The price of Good 1 is 5 and the price of Good 2 is 10. a. What kind of preferences does James have? b. Use the substitution method to find the interior solution to his utility maximization problem. Show your work. c. Does = at the interior solution? Explain. d. Is the solution in (b) the optimum? Explain

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