Harry Mazzola Has the Utility Function U(x₁, X₂) = Min{x₁

question 48

Multiple Choice

Harry Mazzola has the utility function U(x₁, x₂) = min{x₁ + 2x₂, 2x₁ + x₂}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $3 per unit and the price of french fries is $4, then Harry will

• A) definitely spend all of his income on corn chips.
• B) definitely spend all of his income on french fries.
• C) consume at least as many corn chips as french fries but might consume both.
• D) consume at least as many french fries as corn chips but might consume both.
• E) consume equal amounts of french fries and corn chips.