Susan's Utility Function Is U(x, Y) = (X + Y)R²

question 34

Multiple Choice

Susan's utility function is U(x, y) = (x + y) R², where x and y are the quantities of goods X and Y that she consumes and R is the number of hours of leisure that she has per day. Good X costs 4 dollars per unit and good Y costs 2 dollars per unit. Her wage rate is 8 dollars per hour and she has 15 hours per day to allocate between labor and leisure. She will

• A) consume equal amounts of goods X and Y.
• B) consume 10 units of good X.
• C) consume 20 units of good Y.
• D) work 10 hours a day.
• E) consume twice as much of good X as of good Y.

---

Definitions:

Unwrapped

Exposed or revealed by removing a covering.

Reccomendation

Advisory suggestions provided to guide decisions or propose certain actions.

Unifying

Bringing people or elements together to make or become united, coherent, or as one entity.

Committee

A group of people appointed for a specific function, typically consisting of members of a larger group.