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

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.

Correct Answer:

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