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please answer Alex consumes two goods X and Y. His utility function is given by W. vi - x*v. The price of Good X usedto

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Alex consumes two goods X and Y. His utility function is given by W. vi - x*v. The price of Good X usedto be $10perunft but has recently increased to $20 perunitdue to mesoodbeing taxed. The price of Good Y has remained unchanged at $20 per unit. Alex has $1000 to spend. Suppose the government wants to give Alex enough money so that he can still consume the amount of X and Y that he was consuming before the price change. Which of the following statements is CORRECT? At the earlier prices. Alex would consume 20 units of X and 40 units of Y. This bundle now costs $1200. So. the government needs to give Alex an additional $200 to afford the original bundle. But if the government gave Alex an additional $200 then Alex would prefer to consume 30 units each of X and Y. At the earlier prices. Alex would consume 50 units of X and 25 units of Y. This bundle now costs $1500. So. the government needs to give Alex an additional $500 to afford the original bundle. But if the government gave Alex an additional 5500 then Alex would prefer to consume 37.5 units each of X and Y. At the earlier prices. Alex would consume 40 units of X and 20 units of Y. This bundle now costs $1200. So. the government needs to give Alex an additional $200 to afford the original bundle. But if the government gave Alex an additional $200 then Alex w0uld prefer to consume 40 units each of X and Y. Ire] At the earlier prices, Alex would consume 25 units of X and 50 units on. This bundle now costs $1500. But if the government gave Alex an additional $500 then Alex would prefer to consume 40 units each of X and Y

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