Justin consumes goods x and y and has a utility function U(x, y)=x² + y.The price per unit of x is p_x and the price per unit of y is p_y.He has enough money so that he can afford at least 1 unit of either good.When he chooses his best affordable bundle, A)his budget line must be tangent to the indifference curve passing through this bundle. B)he must consume only x. C)he must consume only y if p²_x / p_y exceeds his income. D)he must consume some of each good if p_x =p_y. E)he must consume some of each good if p_y = p_x/2.

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The Answer of Justin consumes goods x and y and has a utility function U(x, y)=x² + y.The price per unit of x is p_x and the price per unit of y is p_y.He has enough money so that he can afford at least 1 unit of either good.When he chooses his best affordable bundle, A)his budget line must be tangent to the indifference curve passing through this bundle. B)he must consume only x. C)he must consume only y if p²_x / p_y exceeds his income. D)he must consume some of each good if p_x =p_y. E)he must consume some of each good if p_y = p_x/2.

Justin Consumes Goods X and Y and Has a Utility