Abby's Utility Function Is Given by U = X²Y²

question 89

Multiple Choice

Abby's utility function is given by U = X²Y². For this utility function, MU_x = 2XY² and MU_y = 2X²Y. If good X costs $10 and good Y costs $5, then Abby will consume ____ times as many units of good Y as she does units of good X.

• A) 2
• B) 3
• C) 4
• D) 1/2

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Definitions:

Diet

The sum of food consumed by a person, affecting health and weight management.

Minerals

Inorganic substances required by the body in small amounts for a variety of functions, including bone formation and enzyme activity.

Nutritional Substances

Elements found in food that are essential for the growth, development, and maintenance of the body; includes vitamins, minerals, proteins, fats, and carbohydrates.

Elements

The basic substances that constitute all matter, each with its own distinct properties, which cannot be broken down into simpler substances by chemical means.