Multiple Choice
Sheila has preferences represented by the utility function U (x, y) = 8x + 4y. She consumes 12 units of good x and 3 units of good y. If her consumption of good x is lowered to 10, how many units of y must she have in order to be exactly as well off as before?
A) 10 units of good y
B) 5 units of good y
C) 12 units of good y
D) 7 units of good y
Correct Answer:
Verified
Correct Answer:
Verified
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