Multiple Choice

An individual's preferences for free time (t) and consumption (c) are represented by the utility function u(t, c) = 2√t + c. Consider two different bundles of goods: Bundle A, which provides a utility level of 40, and Bundle B, which provides a utility level of 45. If both bundles contain the exact same amount of free time (t*), what is the difference in the amount of consumption between Bundle B and Bundle A (i.e., c_B - c_A)?

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Updated 2025-07-27

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