?

Microeconomics

Free Version

Upgrade subject to access all content

Difficult

Maximization of Utility: Substitution Method

MICRO-YWX4ER

Jeffrey's utility depends on his consumption of spherical chocolates ($X$) and cubical toffee ($Y$). His utility function is $U(X,Y)=\sqrt{X}+\sqrt{Y}$. Each spherical chocolate costs $\$3$ and each cubical toffee costs $\$2$.

If his available income is $\$60$, what is his optimal consumption bundle?

A

$X^*=18$ and $Y^*=8$

B

$X^*=8$ and $Y^*=18$

C

$X^*=10$ and $Y^*=15$

D

$X^*=12$ and $Y^*=12$