Harold's utility function is U(x, y) = (x + 3)(y + 2). The price of x is $1. The price of y is $2. At all incomes for which Harold consumes positive amounts of both goods, he will consume
A) more than twice as many units of x as of y.
B) more than twice as many units of y as of x.
C) 1 more unit of x than of y.
D) 1 more unit of y than of x.
E) as many units of y as of x.

Question

Quizplus · Accepted Answer

The Answer of Harold's utility function is U(x, y) = (x + 3)(y + 2). The price of x is $1. The price of y is $2. At all incomes for which Harold consumes positive amounts of both goods, he will consume
A) more than twice as many units of x as of y.
B) more than twice as many units of y as of x.
C) 1 more unit of x than of y.
D) 1 more unit of y than of x.
E) as many units of y as of x.

Harold's Utility Function Is U(x, Y) = (X + 3)(y