Suppose the Consumer's Utility Function Is Given By $\mathrm { U } ( \mathrm { x } , \mathrm { y } ) = \mathrm { xy } + \mathrm { y }$

question 11

Multiple Choice

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

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

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