Suppose the Consumer's Utility Function Is Given By $U ( x , y ) = x y + y$

question 18

Multiple Choice

Suppose the consumer's utility function is given by $U ( x , y ) = x y + y$ where $\mathrm { MU } _ { \mathrm { x } } = \mathrm { y } \quad \mathrm { MU } _ { \mathrm { y } } = \mathrm { x } + 1$
The equation for this consumer's demand curve for $\mathrm { y }$ when $\mathrm { I } < \mathrm { P } _ { \mathrm { x } }$ is:

• A) \(y ^ { d } = 0\)
• B) \(\mathrm { y } ^ { \mathrm { d } } = \frac { 1 } { 2 P _ { y } }\)
• C) \(\mathrm { y } ^ { \mathrm { d } } = \frac { I } { P _ { y } }\)
• D) \(y ^ { d } = 1 / 2\)

---

Definitions:

Service Failure

Occurs when a service does not meet the customer's expectations, often leading to dissatisfaction.

Service Recovery

Service recovery involves a company's response to a service failure, aiming to address the issue and restore customer satisfaction.

Distributive Fairness

The perceived fairness of the outcomes of a decision-making process, including the allocation of resources or rewards among stakeholders.

Procedural Fairness

The perception that the processes and methods used to make decisions and resolve disputes are fair and impartial.