Suppose John is receiving food stamps after losing his job due to the COVID- 19 pandemic. He makes $100 a week driving for Uber and receives $40 worth of food stamps. His utility function is represented by Uj = x2(y 50) where x and y are the amount of food and other goods consumed by John. The unit prices of food and other goods are both one. i.e. px = py = 1.

How many units of food and other goods does John consume?

Will John be better off if the government replaces the food stamp program with an income support program that hands out $40 per week to everyone affected by the pandemic? What is the change in the utility level?

George, John's brother, is exactly in the same situation (i.e. making $100 a week driving for Uber and receiving $40 worth of food stamps) but his utility function is represented by Ug = x(y 80). Will he be better off by the above policy change? What is the change in the utility level?