Harmon's utility function is U(x₁, x₂)=x₁x₂

His income is $200. The price of good 2 is p₂= 4.

Good 1 is priced as follows.

The first 30 units cost $4 per unit and any additional units cost $2 per unit.

What consumption bundle does Harmon

choose?

a.(25, 25)

b.(50, 25)

c.(35, 17.5)

d.(25, 50)