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Suppose a Person Has $20 and Likes Both Rap Music U=C1/2R1/2\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 }

Question 14

Multiple Choice

Suppose a person has $20 and likes both rap music (R) and country music (C) with a set of preferences so that U=C1/2R1/2\mathrm { U } = \mathrm { C } ^ { 1 / 2 } \mathrm { R } ^ { 1 / 2 } . Suppose that the iTunes price of a rap music song is PR=2P _ { R } = 2 and the price of a country music song is PC=1P _ { C } = 1 . What is the lowest level of  utility that \text { utility that } is unaffordable?


A) 6
B) 7
C) 50\sqrt { 50 }
D) 8

Correct Answer:

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