Katie Kwasi's Utility Function Is U(x₁, X₂)= 2(ln X₁)+ X₂

question 58

Multiple Choice

Katie Kwasi's utility function is U(x₁, x₂) = 2(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)20
• B)18
• C)10
• D)5
• E)There is not enough information to determine how many.

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