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:

Sole Proprietorships

A company that is both owned and managed by one person, where there is no legal separation between the proprietor and the business itself.

Secondary Market

The marketplace for the buying and selling of pre-owned securities or financial instruments.

IBM

International Business Machines Corporation, a multinational technology company known for its computer hardware, software, and IT services.