A sports bar charges $5 per drink (good X) and $10 per plate of appetizers (good Y). Victor, a patron of the bar, allocates $90 each week to enjoy drinks and appetizers. His preferences over these goods are given by the following utility function: U(x,y) = xy2 Victor’s marginal rate of substitution between drinks and appetizers at any given bundle (x,y) is: MRSxy = y/2x Suppose the government raises sales taxes on alcohol, forcing the bar manager to charge $6 per drink. Determine Victor’s optimal bundle and utility level.

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