Harry Mazzola has the utility function U ( x 1 , x 2 ) = min{ x
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Question:
Harry Mazzola has the utility function U(x1, x2) = min{x1 + 2x2, 2x1 + x2}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $3 per unit and the price of french fries is $4, then Harry will
a. | definitely spend all of his income on corn chips. |
b. | definitely spend all of his income on french fries. |
c. | consume at least as many corn chips as french fries but might consume both. |
d. | consume at least as many french fries as corn chips but might consume both. |
e. | consume equal amounts of french fries and corn chips. |
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