Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X1+ X2. If pens are twice as expensiv the pencils, what would be his optimal bundle? O Buy only Pens O Any combination maximises his utility O Buy only Pencils O Buy same amount of pens and pencils O Buy twice as many pencils as pens O No answer.
Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X1+ X2. If pens are twice as expensiv the pencils, what would be his optimal bundle? O Buy only Pens O Any combination maximises his utility O Buy only Pencils O Buy same amount of pens and pencils O Buy twice as many pencils as pens O No answer.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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Transcribed Image Text:Daniele has an income of 100 and he has to spend it to buy pencils and pens. To him, the two goods are perfect substitutes, i.e. u(x₁,x2)= X₁ + X2. If pens are twice as expensive as
the pencils, what would be his optimal bundle?
O Buy only Pens
O Any combination maximises his utility
O Buy only Pencils
O Buy same amount of pens and pencils
O Buy twice as many pencils as pens
O No answer.
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