Katie Kwasi's Utility Function Is U(x₁, X₂) = 5(ln X₁)

question 70

Multiple Choice

Katie Kwasi's utility function is U(x₁, x₂) = 5(ln x₁) + x₂. Given her current income and the current relative prices, she consumes 10 units of x₁ and 15 units of x₂. If her income doubles, while prices stay constant, how many units of x₁ will she consume after the change in income?

• A) 10
• B) 15
• C) 5
• D) 20
• E) There is not enough information to determine how many.

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