An Individual Derives Utility from Games, G (Y-Axis), and Toy

question 62

Multiple Choice

An individual derives utility from games, g (y-axis) , and toy airplanes, a (x-axis) , described by the utility function U(g,a) = g^0.6a^0.4. The price per game is $20 and the price of toy airplanes is $10. Using the slope of the income consumption curve (ICC) , determine whether games and toy airplanes are normal or inferior goods when income increases from $100 to $200.

• A)Both goods are normal goods with an ICC slope of .
• B)Both goods are normal goods with an ICC slope of .
• C)Both goods are inferior goods with an ICC slope of - .
• D)Both goods are inferior goods with an ICC slope of - .

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Definitions:

ASL Acquisition

ASL Acquisition involves the process of learning or acquitting the American Sign Language, used predominantly by the deaf and hard-of-hearing communities in the United States.

Adolescence

Adolescence is a developmental stage that marks the transition from childhood to adulthood, characterized by significant physical, psychological, and social changes.

Deficits

Deficits refer to the amount by which something, especially a sum of money, is too small.

Fluent

Describes the ability to express oneself easily and articulately, often used in the context of speaking or writing a language.