Suppose That There Are Two Goods, X and Y

question 30

Multiple Choice

Suppose that there are two goods, X and Y. The utility function is U = X²Y². The price of X is P, and the price of Y is $50. Income is $600. The demand for X as a function of P is X = ____.

• A) 300/P
• B) 200/P
• C) 20/P
• D) 2P