Suppose a Consumer Has M = $200 to Spend on Two

Multiple Choice

Suppose a consumer has M = $200 to spend on two goods,X and Y.If the per-unit prices of X and Y are respectively given by P_X = $2 and P_Y = $4,then utility maximization subject to a budget constraint can be found from which of the following Lagrangians?

A) ℒ = U(X,Y) + (200 − 2X − 4Y)
B) ℒ = U(X,Y) + (200 − 2P_X − 4P_Y)
C) ℒ = (200 − 2X − 4Y) + U(X,Y)
D) ℒ = U(X,Y) + (2X − 4Y + 200)