試題詳解

12. Lazarm has the utility function U( x₁ , x2 ) = min {2 x₁ + x₂ , x₁ + 2 x₂ }. He has $40 to spend on both goods. If the prices of good 1 and good 2 are $1 and $4 respectively, Lazarm will
(A) consume at least as many good 2 as good 1 but might consume both.
(B) consume at least as many good 1 as good 2 but might consume both.
(C) definitely spend all of his income on good 1.
(D) definitely spend all of his income on good 2 .
(E) none of the above.