Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function(₁,₂) = min{₁,₂}, where₁,₂ 0. The prices of the two commodities are 1 and 2 respectively and the consumer's income is 150.

If the income of the consumer increases by 1 unit, the

Max. score: 4; Neg. score: 0

• The optimum consumption of commodity 1 increases by and the optimum consumption of commodity 2 increases by .
• The Optimum consumption of commodity 1 increases by 1/3 and the optimum consumptionof commodity 2 increases by 1/3.
• The optimum consumption of commodity 1 increases by 1/3 and the optimum consumption of commodity 2 increases by 2/3.
• None of the above.