Andrew's utility function is U(x₁, x₂) = 4x²₁ + x₂. Andrew's income is $32, the price of good 1 is $16 per unit, and the price of good 2 is $1 per unit. What happens if Andrew's income increases to $80 and prices do not change? (Hint: Does he have convex preferences?) A) He will consume 48 more units of good 2 and the same number of units of good 1 as before. B) He will increase his consumption of both goods. C) He will reduce his consumption of good 2. D) He will consume the same number of units of good 2 and 3 more units of good 1 as before. E) None of the above.

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The Answer of Andrew's utility function is U(x₁, x₂) = 4x²₁ + x₂. Andrew's income is $32, the price of good 1 is $16 per unit, and the price of good 2 is $1 per unit. What happens if Andrew's income increases to $80 and prices do not change? (Hint: Does he have convex preferences?) A) He will consume 48 more units of good 2 and the same number of units of good 1 as before. B) He will increase his consumption of both goods. C) He will reduce his consumption of good 2. D) He will consume the same number of units of good 2 and 3 more units of good 1 as before. E) None of the above.

Andrew's Utility Function Is U(x1, X2) = 4x21 + X2

Andrew's Utility Function Is U(x₁, X₂) = 4x²₁ + X₂