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) \(y ^ { d } = 1 / 2\)

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Definitions:

Behavioural Therapist

A professional who employs principles of behaviorism to treat psychological disorders and modify problematic behaviors through techniques such as conditioning.

Nonaggressive Ways

Methods or approaches that avoid violence or hostility in dealing with others or resolving conflicts.

Maladaptive Beliefs

Irrational or dysfunctional thought patterns that negatively influence behavior and well-being.

Negative Thoughts

Internal, critical, or pessimistic perceptions and beliefs that can affect mood and well-being.