Mike Consumes Two Commodities, X and Y, and His Utility

question 46

Multiple Choice

Mike consumes two commodities, x and y, and his utility function is min{x + 2y, y + 2x}. He chooses to buy 8 units of good x and 16 units of good y. The price of good y is $.50. What is his income?

• A) $32
• B) $40
• C) $24
• D) $16
• E) Mike's income cannot be found unless the price of x is given too.

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Definitions:

International Community

A term referring to the collective group of sovereign states and international organizations interacting on the global stage, often in the context of law and diplomacy.

Conventions

Agreements or treaties between countries that are generally accepted and practiced, often setting standards in various fields, including human rights, environmental protection, and the laws of war.

Direct Confrontations

Situations where opposing forces or parties engage in a straightforward conflict or competition, often without intermediaries.

Illegal Activities

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