For the utility function U =3x5y and income constraint I =3x + 5y,the utility maximizing consumer will choose to consume:
A)all x.
B)all y.
C)one half of their income in good x and one half of their income in good y.
D)unknown because there is no unique utility maximizing combination of x and y.

Question

Quizplus · Accepted Answer

The utility function U = 3x5y is linear, meaning the consumer will be indifferent along the budget line, and there is no unique utility-maximizing combination of x and y.

For the Utility Function U =3x5y and Income Constraint I