Phil's Utility Function Is U = XY, Where MU_X =

question 36

Essay

Phil's utility function is U = XY, where MU_X = Y and MU_Y = X. In Lancaster, Pennsylvania, Phil's income would equal $500, and the prices of good X and good Y are $5 and $5, respectively. In Washington, D.C., Phil's income would equal $800, and the prices of good X and good Y are $8 and $10, respectively. Where should Phil live? Show your work.

---

Definitions:

Breathing Pattern

The characteristic rhythm and depth of breathing in an individual, which can vary depending on physical activity, emotional state, and health conditions.

Polygraph

A machine used to detect and record changes in physiological processes such as heart rate, breathing, and perspiration, often used in lie detection.

Physiological Measurement

The process of recording biological activities, such as heart rate or brain activity, often used in psychological research to assess responses.

Lie-Detector Test

A technique that attempts to determine if someone is lying by measuring physiological responses, such as blood pressure, pulse, and skin conductivity.