Suppose That a Consumer Has Utility U(X,Y) = 2XY

question 77

Multiple Choice

Suppose that a consumer has utility U(X,Y) = 2XY + X and income of $499 to spend on goods X and Y. The initial prices of X and Y are $1 and $2 per unit, respectively. Suppose the price of good X increases to $2 per unit. The total effect on the consumption of goods X and Y is ____ for good X and ____ for good Y.

• A) 125; 0
• B) -125; 0
• C) 0; 125
• D) 0; -125

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Definitions:

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Congressional Hearing

A formal meeting or session held by a congressional committee to investigate, discuss, or review public matters or legislation.

Bandura's Theory

Refers to the social learning theory, which emphasizes the importance of observing, modeling, and imitating the behaviors of others.

Bandura

Refers to Albert Bandura, a psychologist who is best known for his social learning theory and the concept of self-efficacy.