Question: Jamal has a utility function of Ub = X 1 , X 2 = (X 1 +2) x (X 2 + 3). He also has

Jamal has a utility function of Ub = X1, X2 = (X1 +2) x (X2 + 3). He also has income m and faces price P1 and Ps for goods X1 and X2 respectively.

What is Jamal's optimal choice of goods 1 and 2 as functions of his income and prices?

a. X*1 = m+2P1-3P2/2P1 , X*2 = m-2P1+3P2/2P2

b. X*1 = m-3P1+2P2/3P1, X*2 = m+3P1-2P2/3P2

c. X*1= m-3P1+2P2/2P2, X*2 = m+3P1 - 2P2/2P2

d. X*1 = m+2P1 - 3P2/3P2, X*2 = m-2P1 + 3P2/3P1

e. none of these options

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