Question

David's utility function is $U = B + 2Z$, so $MU_B = 1$ and $MU_Z = 2$. Describe the location of his optimal bundle (if possible) in terms of the relative prices of B and Z. Let good Z be measured on the horizontal axis and good B on the vertical axis. In addition, let the price of B be $p_B$ and the price of Z be $p_Z$. David's optimal bundle A. will be on a line whose slope is $\frac{p_Z}{p_B} = 0.5$. B. will be on the horizontal axis if $\frac{p_Z}{p_B} < 2$ and on the vertical axis if $\frac{p_Z}{p_B} > 2$. C. will be on the 45-degree line running between the horizontal and vertical axes. D. will be on the horizontal axis if $\frac{p_Z}{p_B} < 0.5$ and on the vertical axis if $\frac{p_Z}{p_B} > 0.5$. E. will be on a line whose slope is $\frac{p_Z}{p_B} = 2$.

          David's utility function is
$U = B + 2Z$,
so $MU_B = 1$ and $MU_Z = 2$. Describe the location of his optimal bundle (if possible) in terms of the relative prices of B and Z.
Let good Z be measured on the horizontal axis and good B on the vertical axis. In addition, let the price of B be $p_B$ and the price of Z be $p_Z$.
David's optimal bundle
A. will be on a line whose slope is $\frac{p_Z}{p_B} = 0.5$.
B. will be on the horizontal axis if $\frac{p_Z}{p_B} < 2$ and on the vertical axis if $\frac{p_Z}{p_B} > 2$.
C. will be on the 45-degree line running between the horizontal and vertical axes.
D. will be on the horizontal axis if $\frac{p_Z}{p_B} < 0.5$ and on the vertical axis if $\frac{p_Z}{p_B} > 0.5$.
E. will be on a line whose slope is $\frac{p_Z}{p_B} = 2$.

davids utility function is u b 2z so mub 1 and muz 2 describe the location of his optimal bundle if possible in terms of the relative prices of b and z let good z be measured on the horizo 84287

Added by Esther G.

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