Multiple Choice
Charlie has a utility function U(x, y) = (x + 3) (y + 4) . 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. Charlie consumes
A) 2 more units of x than he consumes of y.
B) 1 more unit of x than he consumes of y.
C) exactly as many units of x as of y.
D) 1 more unit of y than he consumes of x.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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