Howard Has the Utility Function

question 4

Multiple Choice

Howard has the utility function . His income is $30.

• A) Howard does not like good y.
• B) Howard has a bliss point.
• C) If the price of good x is $4 and the price of good y is $1, Howard will buy 2 units of y.
• D) Howard will buy good y only if it is cheaper than good x.
• E) None of the above.

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Definitions:

Specific Result

A particular outcome or effect that is aimed for or achieved in a given context.

Certainty

A state of being free from doubt or convinced about a fact, outcome, or condition.

Alternative Solutions

Viable options or strategies that can be implemented to solve a problem or address a situation, often explored during the decision-making process.

Specific Event

A distinct occurrence or happening, often of particular importance or significance, that takes place at a certain time and location.