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Sally the Greek’s preferences can be described by the utility function U(x,y) = (2x^1/2 + y^1/2)2.
(a) What is equation for the indi?erence curve for a utility of 25?
(b) By how much does utility increase when Freddy increases consumption of good y by one (small) unit, when initially U = 25 and x = 4?
(c) Holding utility constant at 25, if initially x = 4, how many additional (small) units of y does Freddy have to consume if his consumption of x drops by 6 (small) units?
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