In Periods 0 and 1, Ralph Consumed Two Goods, X₁

question 50

Multiple Choice

In periods 0 and 1, Ralph consumed two goods, x₁ and x₂, and his utility functions in the two periods were identical. In period 0 the prices of x₁ and x₂ were $2 and $1 respectively, and Ralph consumed 10 units of x₁ and 80 units of x₂. In period 1 the prices of x₁ and x₂ were identical, and equal to $1. If Ralph consumed 15 units of x₁ and 65 units of x₂ in period 1, then:

• A)he may have been equally well off in both periods.
• B)we cannot say whether he was better off in one of the periods.
• C)he was better off in period 1.
• D)he was better off in period 0.

---

Definitions:

Nitric Oxide

Nitric oxide is a reactive gas and a signaling molecule in many physiological and pathological processes, playing a pivotal role in vascular regulation, neurotransmission, and immune responses.

Blood Vessels

Tubular structures carrying blood throughout the body, including arteries, veins, and capillaries.

Amine Neurotransmitters

Neurotransmitters derived from amino acids that play significant roles in mood regulation, alertness, and the neuronal communication, including dopamine, norepinephrine, and serotonin.

L-dopa

L-dopa is a chemical precursor to dopamine, used as a medication primarily for the treatment of Parkinson's disease and dopamine-responsive dystonias.