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Mike's Income Is $450 Per Month

Question 59

Multiple Choice

Mike's income is $450 per month.He spends all of it on books (B) and CDs (C) .Books cost $10 and CD's cost $15.His preferences correspond to the utility function U(B,C) = BxC.For that utility function,the marginal benefit of books is C and the marginal benefit of CDs is B. How many books and how many CDs will he purchase in a month?


A) 10 CDs and 30 Books
B) 30 CDs and 10 Books
C) 20 CDs and 15 Books
D) 15 CDs and 30 Books

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