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Question 4: Erling's preferences over goods (x1, x3) are represented by the utility function u(xy, z2) = /71 + 2, where MU, = and MU;

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Question 4: Erling's preferences over goods (x1, x3) are represented by the utility function u(xy, z2) = /71 + 2, where MU, = and MU; = 1. Suppose the market prices are p; = 2 and ps = 3, and that Erling's income = m (assume m > 0). (a) Write Erling's utility maximization problem. (b) Start by solving for an interior solution, and find Erling's optimal bundle (z}, z%). Note that your solution here may be a function of income m. (c) Given your results from part (b), for what values of income m will Erling choose to consume zy =07

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