10. (3 marks) Data is good "x" ! Px = 2 and Py = 1. U=x05y5 I = $400 This implies that MUx = 0.50 x-0.5 yo.5 MUy = 0.50 x0.5 y-05 a) (1 mark) Find the U-max. bundle and its U, in the absence of any special plans. b) (2 marks) Now assume that the consumer can buy a data plan for $100, allowing up to 75 TB of data per period. Beyond that, even more can be bought at the given Px =2. Note the resulting budget constraint under the plan. What is the optimal bundle? Hint: there are only two points you need to check. P.S. You can also obtain the answer by comparing the slopes of the indifference curve and the budget line at the corner of the constraint. Notice that either method yields the correct conclusion. (Full marks for getting It right by either method.)