Suppose Charlie has a utility function U(1, 2) = min{201, 5æ2} and that initially the price of x2 is 5 and the price of 21 is 1, and that initially in the optimal bundle Charlie consumes 20 units of æ1. If the price of 1 then changes to 3, what is the new optimal amount of a1? None of the other answers are correct O 12 15 O 10 4.

Suppose Charlie has a utility function U(1, 2) = min{201, 5æ2} and that initially the price of x2 is 5 and the price of 21 is 1, and that initially in the optimal bundle Charlie consumes 20 units of æ1. If the price of 1 then changes to 3, what is the new optimal amount of a1? None of the other answers are correct O 12 15 O 10 4.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 6P

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