Question: Suppose that Eric has the following utility function: U(x, y) = x2 +y. More- over, Eric's disposable income is $10. a. If Px = Py

Suppose that Eric has the following utility function: U(x, y) =

Suppose that Eric has the following utility function: U(x, y) = x2 +y. More- over, Eric's disposable income is $10. a. If Px = Py =1, what is Eric's chosen bundle (a*, y*)? b. Draw the budget constraint and the indifference curve on a graph, and identify (a* , y* ). c. If py increases to 2, what is Eric's new chosen bundle (a*, y* )

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