Louis's Utility Function Is U = 10X + 6Y

question 104

Multiple Choice

Louis's utility function is U = 10X + 6Y. Louis has a budget of $60 to spend on goods X and Y. The price of good X is $3 and the price of good Y is $2. How many units of good X and good Y does Louis purchase?

• A) X = 20 and Y = 0
• B) X = 0 and Y = 10
• C) X = 30 and Y = 0
• D) X = 10 and Y = 20

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Definitions:

Tenancy in Common

A form of joint ownership of property in which each owner holds an undivided interest without right of survivorship.

Corporation

A legal entity separate from its owners, providing limited liability protection to its shareholders, and possessing the ability to own property, enter contracts, and sue or be sued.

Fixture

An item that was once movable personal property but has been attached to, and becomes part of, the real estate.

Physical Attachment

The process of affixing or connecting an object to another, often in a manner that requires physical force or means.