Poindexter's Utility Function Is U(x, Y)= Min{x + 2y, 3x

question 6

Multiple Choice

Poindexter's utility function is U(x, y) = min{x + 2y, 3x + y}, where x is butter and y is guns.If the price of butter is $4 and the price of guns is $5, what would it cost Poindexter to buy the cheapest bundle that he likes as well as 4 units of butter and 3 units of guns?

• A)$31
• B)$32
• C)$29
• D)$28
• E)None of the above.

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