Jimmy's utility function is U(a, b)= ab, where a is his consumption of apples and b is his consumption of bananas.If prices and income change in such a way that Jimmy's old consumption lies on his new budget line, then Jimmy will not change his consumption bundle.

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Jimmy's utility function suggests he has perfect substitutes preferences (linear utility function), meaning he will consume only the good that gives him the highest utility per dollar spent. If prices or income change, even if his old consumption bundle lies on the new budget line, he may adjust his consumption to focus on the good that now offers more utility per dollar, assuming the price change affects the relative prices of apples and bananas.

Jimmy's Utility Function Is U(a, B)= Ab, Where a Is