Suppose a Consumer Buys Two Goods $x$ And $y$ And Has Income Of

question 81

Multiple Choice

Suppose a consumer buys two goods, $x$ and $y$ and has income of $\$ 30$ . Initially $P _ { x } = 3$ and $P _ { y } =$ 3 and the consumer chooses basket $A$ with $x = 2$ and $y = 8$ . The prices change to $P _ { x } = 4$ and $P _ { y }$ $= 2$ and the consumer chooses basket $B$ with $x = 7$ and $y = 1$ .

• A) These choices are consistent with utility maximization.
• B) These choices are not consistent with utility maximization.
• C) With this information it is not possible to determine if these choices are consistent with utility maximization.
• D) Basket \(B\) must be strictly preferred to basket \(A\).

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Definitions:

Arson

The criminal act of deliberately setting fire to property for malicious or fraudulent purposes.

Guard Solidarity

The unity or agreement of feeling or action among prison guards, often with the goal of maintaining order and safety within prison walls.

Prison Guard Code

relates to the unwritten rules and cultural norms among prison guards, aiming to regulate their behavior, loyalty, and interaction with inmates.

Vulnerability

The quality of being exposed to the possibility of being attacked or harmed, either physically or emotionally.