Wanda Littlemore's Utility Function Is U(x, Y) = X

question 38

Multiple Choice

Wanda Littlemore's utility function is U(x, y) = x + 47y - 3y². Her income is $107. If the price of x is $1 and the price of y is $23, how many units of good x will Wanda demand?

• A) 11
• B) 19
• C) 0
• D) 18
• E) 15

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.

Cost of Goods Available

The total cost of goods that are available for sale during a certain period, including goods purchased or manufactured.

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.