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Suppose the Consumer's Utility Function Is Given by U(x,y) = I2Py\frac { I } { 2 P _ { y } }

Question 29

Multiple Choice

Suppose the consumer's utility function is given by U(x,y) = xy + y where MUx = y MUy = x+1
The equation for this consumer's demand curve for y when I < Px is


A) yd = 0
B) yd = I2Py\frac { I } { 2 P _ { y } }
C) yd = IPy\frac { I } { P _ { y } }
D) yd = 1/2

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