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4. Viktor survives on a typical undergraduate diet of pizza and beer: he does not con- sume any other items. Suppose Viktor's preferences over pizza

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4. Viktor survives on a typical undergraduate diet of pizza and beer: he does not con- sume any other items. Suppose Viktor's preferences over pizza (21 ) and beer (2) are represented by the utility function u($1, 2) = 4x] X2 -17. (a) Apply a positive monotonic transformation to convert Viktor's utility function into a Cobb Douglas utility function with exponents summing to 1. (b) What percentage of Viktor's income is Viktor spending on beer? What percentage of Viktor's income is Viktor spending on pizza? (c) Suppose the price of beer doubles, but the price of pizza and Viktor's income stay the same. How much beer is Viktor consuming as a percentage of his previous beer consumption? How much pizza is Viktor consuming as a function of his previous pizza consumption? (d) Would Viktor be willing to switch bundle A = (4, 2) for bundle B = (2, 4)? Why or why not

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