Herbie's Utility Function Is U(x, Y)= X + 8y -

Multiple Choice

Herbie's utility function is U(x, y) = x + 8y - y²/2, where x is the number of x's he consumes per week and y is the number of y's he consumes per week.Herbie has $200 a week to spend.The price of x is $1.The price of y is currently $4 per unit.Herbie has received an invitation to join a club devoted to the consumption of y.If he joins the club, Herbie can get a discount on the purchase of y.If he belonged to the club, he could buy y for $1 a unit.How much is the most Herbie would be willing to pay to join this club?

A) $33
B) $21
C) $4.50
D) $16.50
E) None of the above.