Consider a consumer who has utility function U(x,y) = x + 2y, where x is the amount of good 1, and y is the amount of good 2, and income of 90. Suppose the price of good 1 is 5 dollars per unit, and the price of good 2 is 15 dollars per unit. What is the consumer's quantity demanded of each good? I.e. which consumption bundle (x,y) that the consumer can afford maximizes their utility? O(4.5,3) O (20,6) O (18,0) O (0,6)

Consider a consumer who has utility function U(x,y) = x + 2y, where x is the amount of good 1, and y is the amount of good 2, and income of 90. Suppose the price of good 1 is 5 dollars per unit, and the price of good 2 is 15 dollars per unit. What is the consumer's quantity demanded of each good? I.e. which consumption bundle (x,y) that the consumer can afford maximizes their utility? O(4.5,3) O (20,6) O (18,0) O (0,6)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a consumer who has utility function U(x,y)= x + 2y, where x is the amount of good 1, and y is the amount of good 2, and income of 90.
Suppose the price of good 1 is 5 dollars per unit, and the price of good 2 is 15 dollars per unit. What is the consumer's quantity demanded of each
good? I.e. which consumption bundle (x,y) that the consumer can afford maximizes their utility?
O(4.5,3)
O (20,6)
(18,0)
O (0,6)

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