Question: solve fast and answer should be matched with correct explanation. Handwritten answer also appreciated but fast. John currently lives in Sydney where he earns $2700

solve fast and answer should be matched with correct explanation. Handwritten answer also appreciated but fast.

solve fast and answer should be matched with correct explanation. Handwritten answer

John currently lives in Sydney where he earns $2700 a week as a high school principal. If he moves to Batemans Bay, he has to accept a position as a classroom teacher where he will earn $2100 a week. John only considers two goods, cost of living (c) and health (h). In Sydney, Pc = 54 and ph = 90. In Batemans Bay, Ph = 36. John's utility function is u(c, h) = h + czh2. a) What is John's optimal consumption of h in Sydney? 13.5 One possible correct answer is: 17.715 b) What would be John's optimal consumption of c in Batemans Bay? X One possible correct answer is: 24.243 c) What is the maximum cost of living Ph such that John will accept to move to Batemans Bay? X One possible correct answer is: 73.651

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