Consider a variation of the question we solved in class. In this case, Felix finds enjoyment in two activities: reading e-books (1) and playing mobile games (2). His utility from these activities is described by the function =561162. He has a budget of $60, and both e-books and mobile games are priced at $1 each. Suppose that the government offers Felix 30 free e-books. A Felix would be worse off with the government's subsidy because receiving additional goods typically reduces a consumer's utility, all else being equal. B Felix prefers cash over the free e-books because the cash enables him to choose a combination of e-books and mobile games that provides a higher utility than the combination possible with the free e-books. C Felix's optimal bundles makes him indifferent between receiving the cash and the free e-books because either option provides the same utility level. D The equivalent variation (EV) is twice as big as Felix's initial income. E None of the answers hold