Harry Mazzola Has the Utility Function U(x₁, X₂)=min{x₁ + 2x₂

question 16

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 $4 per unit and the price of french fries is $2 per unit, 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.

---

Definitions:

Tax Burden

The total amount of taxes paid by individuals or businesses, relative to their income or profit.

Rental Housing

Dwelling units leased or rented to tenants under a contract or agreement, providing a place to live in exchange for payment.

Price Ceiling

A legal maximum price at which a good can be sold, often set by government to control prices.

Housing Shortage

A situation where the supply of available houses is not sufficient to meet the demand for them in a particular area.