5) A consumer of two goods, good 1 and good 2, has a utility function u (X1, X2) = x1 0,6. X2 0,4, where x denotes units of good 1 and X2 units of good 2. The price of good 1 is 5 euros And the price...

5) A consumer of two goods, good 1 and good 2, has a utility function u (X1, X2) = x1 0,6. X2 0,4, where x denotes units of good 1 and X2 units of good 2. The price of good 1 is 5 euros

And the price of good 2 is 3 euros per unit and the consumer’s income is 150 euros. Suppose that only the price of good 1 changes and that the new price is p, ‘ = 2.

Then the demand function of good 1 that is derived from the utility function is

Choose one:

1. A) X1= 0.6m/p1


2. B) X1= 6m/p1


3. C) X1= 4m/p1


4. D) X1= 0.4m/p1


5. E) Not defined