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

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Definitions:

Acetylcholine

A neurotransmitter in both the peripheral and central nervous system that is involved in muscle activation, heart rate, and memory function.

Cyclic AMP

Cyclic AMP (cAMP) is a second messenger important in many biological processes, serving as a signaling molecule that transduces extracellular signals into cellular responses.

Signal Transduction

Signal Transduction is the process by which a cell converts one kind of signal or stimulus into another, involving a sequence of biochemical reactions inside the cell, which are carried out by enzymes and linked through second messengers.

Reception

In biological terms, it relates to the process by which cells detect and respond to signals from their environment, often involving molecules binding to receptors on the cell surface.