Suppose That P_x = 2 and P_y = 5

question 78

Multiple Choice

Suppose that p_x = 2 and p_y = 5. Jane spends her $100 income on 25 units of x and 10 units of y. When the price of x doubled to $10 per unit, Jane's father gave her an extra $50 so that she could buy the same bundle that she did before the price change. Assuming convex indifference curves, which of the following statements is true?

• A)No conclusions can be drawn regarding Jill's welfare unless we know her utility function
• B)Jill is just as well off as before the price change
• C)Jill is actually better off now than she was before
• D)Jill is worse off now than she was before

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Definitions:

Cluster C

A category within the Diagnostic and Statistical Manual of Mental Disorders (DSM) that includes anxiety, avoidant, and dependent personality disorders.

Dependent

Relying on someone or something else for support, sustenance, or care, often leading to a lack of autonomy.

Big Five Traits

A model outlining five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Multipersonality Disorder

A mental disorder, more accurately referred to as Dissociative Identity Disorder, characterized by the presence of two or more distinct personality states within a single individual.