Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X₁ + X2. If pens are twice as expensive asthe pencils, what would be his optimal bundle?O Buy only PensO Any combination maximises his utilityO Buy only PencilsO Buy same amount of pens and pencilsO Buy twice as many pencils as pensO No answer.

Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X1+ X2. If pens are twice as expensiv the pencils, what would be his optimal bundle? O Buy only Pens O Any combination maximises his utility O Buy only Pencils O Buy same amount of pens and pencils O Buy twice as many pencils as pens O No answer.

Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X1+ X2. If pens are twice as expensiv the pencils, what would be his optimal bundle? O Buy only Pens O Any combination maximises his utility O Buy only Pencils O Buy same amount of pens and pencils O Buy twice as many pencils as pens O No answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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