Utility function-goods in order to maximize his utility

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True or false? Provide a brief explanation.

Linus has the utility function U(x1, x2) = x1 + 2x2. If the price of good 1 is $1 and the price of good 2 is 50 cents then Linus must consume equal amounts of both goods in order to maximize his utility.

Reference no: EM13859045

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