Suppose a Consumer's Level of Satisfaction Is Given by AB²

question 22

Multiple Choice

Suppose a consumer's level of satisfaction is given by AB² and he/she has a total of $10 to spend on goods A and B. If the price of A is $1 and the price of B is $2, and assuming you can only purchase whole units (not fractional) of A and B, how many units of A and B should he/she purchase?

• A) 2 units of A and 4 units of B.
• B) 4 units of A and 3 units of B.
• C) 6 units of A and 2 units of B.
• D) 0 units of A and 5 units of B.

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