The Consumer's Budget Constraint Is $6 = 0

question 42

Multiple Choice

The consumer's budget constraint is $6 = 0.50G + P, where G is packs of gum and P is bags of pretzels. The marginal utility of pretzels is MU_P = G^0.5, and the marginal utility of gum is MU_G = 0.5G^-0.5P. The consumer's utility function is U = G^0.5P. The utility-maximizing bundle consists of _____ packs of gum and _____ bags of pretzels.

• A) 8; 2
• B) 4; 4
• C) 2; 5
• D) 6; 3

---

Definitions:

Gene Variation

Differences in the DNA sequence among individuals, contributing to the genetic diversity of organisms.

Depression

A mood disorder causing a persistent feeling of sadness and loss of interest, affecting an individual's thoughts, behavior, feelings, and sense of well-being.

Stress Hormones

Chemical substances released into the body in response to perceived threats, playing a key role in the fight or flight response, such as cortisol and adrenaline.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also known to play a role in bonding, social behaviors, and stress relief.