Ollie has a utility function U(x, y) = (x + 2) (y + 3) . The price of x is $1 and the price of y is $1. When he maximizes his utility subject to his budget constraint, he consumes positive amounts of both goods. Ollie consumes
A) exactly as many units of x as of y.
B) 1 more unit of x than he consumes of y.
C) 1 more unit of y than he consumes of x.
D) 2 more units of x than he consumes of y.
E) None of the above.
Correct Answer:
Verified
Q25: Harold's utility function is U(x, y) =
Q26: Howard has the utility function
Q27: Isobel consumes positive quantities of both jam
Q28: Danny Featherweight is taking a tough course
Q31: Minnie Applesauce is shopping for a summer
Q32: Mary Granola consumes tomatoes and nectarines. Mary's
Q33: Paul's utility function is min{x + 3y,
Q34: Which of the following could possibly change
Q34: Jane's utility function is U(x, y) =
Q39: Ed and Al both consume only bread
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents