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

Question 11

Multiple Choice

Suppose the consumer's utility function is given by U(x,y) =xy+y\mathrm { U } ( \mathrm { x } , \mathrm { y } ) = \mathrm { xy } + \mathrm { y } where MUx=yMUy=x+1\mathrm { MU } _ { \mathrm { x } } = \mathrm { y } \quad \mathrm { MU } _ { \mathrm { y } } = \mathrm { x } + 1
The equation for this consumer's demand curve for xx when I<Px\mathrm { I } < \mathrm { P } _ { \mathrm { x } } is:


A) xd=0x ^ { d } = 0
B) xd=12Px\mathrm { x } ^ { \mathrm { d } } = \frac { 1 } { 2 P _ { x } }
C) xd=12Px12x ^ { \mathrm { d } } = \frac { 1 } { 2 P _ { x } } - \frac { 1 } { 2 }
D) xd=1/2x ^ { d } = 1 / 2

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