Sven, Art, and Isabel Reside on a Tiny Island in the Pacific

Multiple Choice

Sven, Art, and Isabel reside on a tiny island in the Pacific. All three of them have a utility function given by U = Y^0.5, where Y is income per day. Suppose that Sven earns $7 per day, Art earns $25 per day, and Isabel earns $36 per day. What happens to the value of the utilitarian social welfare function If the government takes $9 of Art's income and gives it to Sven?

A) The utilitarian social welfare function will increase from 13.65 to 14.
B) The utilitarian social welfare function will remain unchanged at 68.
C) The utilitarian social welfare function will decrease from 15.50 to 12.30.
D) The utilitarian social welfare function will increase from 8.20 to 12.