Ollie Has a Utility Function U(x, Y)= (X + 2)(y

question 51

Multiple Choice

Ollie has a utility function U(x, y) = (x + 2) (y + 3) .The price of x is $1 and the price of y is $1.When he maximizes his utility subject to his budget constraint, he consumes positive amounts of both goods.Ollie consumes

• A)exactly as many units of x as of y.
• B)1 more unit of x than he consumes of y.
• C)1 more unit of y than he consumes of x.
• D)2 more units of x than he consumes of y.
• E)None of the above.

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