Suppose That There Are Two Goods, X and Y

question 56

Multiple Choice

Suppose that there are two goods, X and Y. The utility function is U = X^0.5Y. The price of X is P, and the price of Y is $4. Income is $120. The demand for X as a function of P is x =____.

• A) 40/P
• B) 20/P
• C) 2/P
• D) 0.5P

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Definitions:

Discomfort

A state of physical or mental unease, often minor and temporary, that does not necessarily equate to pain but is distressing.

Research Method

Research Method involves systematic processes and techniques used to collect, analyze, and interpret data for the purpose of generating new knowledge or understanding.

Watches

Timepieces worn typically on the wrist or carried to offer convenience in telling time.

Records

Documents or files that preserve information or evidence of events, transactions, or activities, maintained for future reference.