Question: Solve clearly 4) Optimal choice, example #4 Bob has utility function U(x,y)=x2+y over goods x and y a) Do we have a name for this

Solve clearly

4) Optimal choice, example #4 Bob has utility function U(x,y)=x2+y over goods x and y a) Do we have a name for this type of utility function? Are Bob's preferences well-behaved? b) Let Bob have budget 1=$60, and let prices be P,=$30, Py=$10. Find Bob's optimal basket of goods x and y. Is this an interior or corner solution? c) What will happen if the price of good y doubles? [Think about: can we use this utility function to describe preferences over pet snakes and pet mice?]

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