Susan's utility function is U(x, y) = (x + y) R2, where x and y are the quantities of goods X and Y that she consumes and R is the number of hours of leisure that she has per day. Good X costs 4 dollars per unit and good Y costs 2 dollars per unit. Her wage rate is 8 dollars per hour and she has 15 hours per day to allocate between labor and leisure. She will
A) consume equal amounts of goods X and Y.
B) consume 10 units of good X.
C) consume 20 units of good Y.
D) work 10 hours a day.
E) consume twice as much of good X as of good Y.
Correct Answer:
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