Suppose the Consumer's Utility Function Is Given By $\mathrm { U } ( \mathrm { x } , \mathrm { y } ) = \mathrm { x } ^ { 1 / 4 } \mathrm { y } ^ { 3 / 4 }$

question 61

Multiple Choice

Suppose the consumer's utility function is given by $\mathrm { U } ( \mathrm { x } , \mathrm { y } ) = \mathrm { x } ^ { 1 / 4 } \mathrm { y } ^ { 3 / 4 }$ where $M U _ { x } = \frac { y ^ { \frac { 8 } { 4 } } } { 4 x ^ { \frac { 8 } { 4 } } } \quad M U _ { y } = \frac { 3 x ^ { \frac { 2 } { 4 } } } { 4 y ^ { \frac { 1 } { 4 } } }$
The equation for this consumer's demand curve for $x$ is:

• A) \(x = \frac { I } { 2 P _ { x } }\)
• B) \(x = \frac { I } { 4 P _ { x } }\)
• C) \(x = \frac { I } { P _ { x } }\)
• D) \(x = \frac { 3 I } { 4 P _ { x } }\)

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Definitions:

Supply of Cars

The total number of cars that manufacturers are willing and able to sell at a given price level in a given period.

Time Interval

A specific duration of time between two points or events.

Input Prices

The cost of resources used in the production process.

Market Period

A short time frame in which the supply of a commodity is fixed, typically because the production process cannot be adjusted quickly.