Hans has $27 which he decides to spend on x and y. Commodity x costs $16 per unit and commodity y costs $10 per unit. He has the utility function U(x, y) = 5x² + 2y² and he can purchase fractional units of x and y. Hans will choose A) only x. B) only y. C) some of each commodity but more y than x. D) some of each commodity but more x than y. E) equal amounts of the two commodities.

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The Answer of Hans has $27 which he decides to spend on x and y. Commodity x costs $16 per unit and commodity y costs $10 per unit. He has the utility function U(x, y) = 5x² + 2y² and he can purchase fractional units of x and y. Hans will choose A) only x. B) only y. C) some of each commodity but more y than x. D) some of each commodity but more x than y. E) equal amounts of the two commodities.

Hans Has $27 Which He Decides to Spend on X