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7. A consumer's preferences for combinations of goods x and y are described by the utility function: u=x+1.5y2/3. Prices are px=10 and py=5. The consumer

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7. A consumer's preferences for combinations of goods x and y are described by the utility function: u=x+1.5y2/3. Prices are px=10 and py=5. The consumer has wealth w=100. What are the optimal quantities of x and y to consume? Is the individual risk-loving, risk-neutral, or risk-averse at these quantities? 8. Suppose wealth decreases to w=20. What are the optimal quantities of x and y to consume? Is the individual risk-loving, risk-neutral, or riskaverse at these quantities

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