Correct choice is (c) Maximum value increases and minimum value goes lesser
For explanation I would say: Consider the level curves of the plane. These are the set of straight lines with equal slope and unequal intercepts. Now as the radius of the circular region is increased, we see that the Lagrange condition(i.e. the level curves to be tangent to the circular boundary) happens to occur further away form the origin. Thus the maximum value is pushed further and the minimum value is decreased further.