Suppose That a Consumer Has Utility U(X,Y) = 2XY

question 55

Multiple Choice

Suppose that a consumer has utility U(X,Y) = 2XY + X and income of $499 to spend on goods X and Y. The prices of X and Y are $1 and $2 per unit respectively. The optimal basket of goods is ____X and ____Y.

• A) 250; 124.5
• B) 200; 150
• C) 150; 200
• D) 124.5; 250

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