where x is whips and y is leather jackets, if Kinko's utility function were U(x, y)=min{6x, 3x + 9y}, then if the price of whips were $20 and the price of leather jackets were $40, Kinko would demand
A)2 times as many leather jackets as whips.
B)3 times as many whips as leather jackets.
C)4 times as many leather jackets as whips.
D)5 times as many whips as leather jackets.
E)only leather jackets.

Question

Quizplus · Accepted Answer

Kinko's utility function is based on the minimum of {6x, 3x + 9y}. For Kinko to maximize utility, the terms inside the min{} function should be equal, leading to 6x = 3x + 9y. Solving for x/y gives x/y = 3, meaning Kinko would demand 3 times as many whips as leather jackets.

Where X Is Whips and Y Is Leather Jackets, If