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Suppose a Person Has $20 and Likes Both Rap Music U=C1/2R1/2\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 }

Question 20

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Suppose a person has $20 and likes both rap music (R) and country music (C) with a set of preferences so that U=C1/2R1/2\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 } .Suppose that the iTunes price of a rap music song is and the price of a country music song is PR=2P _ { R } = 2 .Which level of utility is PC=1P _ { C } = 1 affordable?


A) 50\sqrt { 50 }
B) 9
C) 16
D) 25

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