brownie has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government gives its citizens a coupon that entitles people to 20% discount on their first 10 gallon milk purchases. Gas costs $4 per gallon and government charges $1 for each gallon of purchased gas. John’s utility function is U (x, y) = 9x+10y, where x and y represent gallons of milk and gas consumed, respectively. What is John’s optimal consumption of milk and gas? Question 3 Part b If government removes the quantity restriction to which the coupon applies (i.e. 20% discount is applied to any quantity

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