a. Mr. Odde Ball enjoys commodities x and y according to the utility function U 1x, y2 5 "x2 1 y2

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Maximize Mr. Ball’s utility if px 5 $3, py 5 $4, and he has $50 to spend. Hint: It may be easier here to maximize U2 rather than U. Why will this not alter your results?

b. Graph Mr. Ball’s indifference curve and its point of tangency with his budget constraint. What does the graph say about Mr. Ball’s behavior? Have you found a true maximum?