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Suppose the Consumer's Utility Function Is Given By U(x,y)=xyU ( x , y ) = \sqrt { x y }

Question 82

Multiple Choice

Suppose the consumer's utility function is given by U(x,y) =xyU ( x , y ) = \sqrt { x y } where MUx=y2xMUy=x2yM U _ { x } = \frac { \sqrt { y } } { 2 \sqrt { x } } \quad M U _ { y } = \frac { \sqrt { x } } { 2 \sqrt { y } } The equation for this consumer's demand curve for xx is:


A) x=Ix = I
B) x=I2Pxx = \frac { I } { 2 P _ { x } }
C) x=2Pxx = 2 P _ { x }
D) x=I4Pxx = \frac { I } { 4 P _ { x } }

Correct Answer:

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