3. Let h be the square feet of housing John rents and f be the number of meals he consumes per month. Assume those are the only two goods he consumes. Suppose his preferences over housing and food are represented by the utility function, u(f, h) = f0'25h0'75. Suppose J ohn's employer transfers him from Chicago to New York. Let the price of housing and food in Chicago be $2 /sq. foot and $8/ meal and in New York be $4/ sq. foot and $12 /mea1. Let J ohn's monthly salary in Chicago be $6000. (a) (4) How much of a raise should John get to just compensate him for moving to New York? (b) (4) Alternatively, how much of a pay cut would John be just willing to take to avoid his transfer to New York? (c) (4) What is the change on Marshallian consumer surplus? (Hint: Use the formula you derived in 2(a).)