Multiple Choice
Katie Kwasi's utility function is U(x1, x2) = 5(ln x1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?
A) 10
B) 15
C) 5
D) 20
E) There is not enough information to determine how many.
Correct Answer:
Verified
Correct Answer:
Verified
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