Solved

Abby's Utility Function Is Given by U = X2Y2

Question 89

Multiple Choice

Abby's utility function is given by U = X2Y2. For this utility function, MUx = 2XY2 and MUy = 2X2Y. If good X costs $10 and good Y costs $5, then Abby will consume ____ times as many units of good Y as she does units of good X.


A) 2
B) 3
C) 4
D) 1/2

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q84: A consumer's bundle includes the inferior good

Q85: (Figure: Income and Fruitcake I) Which of

Q86: (Figure: Billiards and Water Park Tickets I)

Q87: A consumer's bundle includes good X and

Q88: The market for good X consists of

Q90: Amisha's Engel curve for potato chips is

Q91: There are 100 consumers in the market

Q92: Abby's utility function is given by U

Q93: (Figure: Beef Jerky and Scallops I) <img

Q94: The size and direction of the income