Question: A utility maximizing individual with the utility function U(X,Y)=max{2X,Y} spends all of her income I=15 on the two goods x and y. The prices of

 A utility maximizing individual with the utility function U(X,Y)=max{2X,Y} spends all

A utility maximizing individual with the utility function U(X,Y)=max{2X,Y} spends all of her income I=15 on the two goods x and y. The prices of the goods x and y are given by Px=3 and Py=5. In the utility maximum the individual obtains the utility U=5. The income expansion path is a straight line. The goods are perfect complements. If the price of good x doubles, the total effect of the price change is less than the income effect of the price change. None of the above

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