Suppose That There Are Two Goods, X and Y

question 46

Multiple Choice

Suppose that there are two goods, X and Y. The utility function is The price of Y is $1 per unit and the price of X is P. The Hicksian demand curve for X for utility equal to 50,000 units is X = ____.

• A) 100P^-0.5
• B) 10P^-0.5
• C) 100P^0.5
• D) 10P

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from acquiring or consuming one more unit of a good or service.

Cowboy Boots

A style of riding boot historically worn by cowboys, characterized by a high heel, pointed toe, and often decorative stitching.

Nikes

A global brand known for designing, manufacturing, and marketing athletic footwear, apparel, equipment, and accessories.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.