Pablo's Utility Function Is , Where X Is the Number

question 7

Multiple Choice

Pablo's utility function is , where x is the number of x's he consumes per week and y is the number of y's he consumes per week. Pablo has $200 a week to spend. The price of x is $1. The price of y is currently $5 per unit. Pablo has received an invitation to join a club devoted to the consumption of y. If he joins the club, Pablo can get a discount on the purchase of y. If he belonged to the club, he could buy y for $1 a unit. How much is the most Pablo would be willing to pay to join this club?

• A) $8
• B) $28
• C) $36
• D) $56
• E) None of the above.

---

Definitions:

Archival

Pertaining to the use or study of historical documents and records for research.

Self-Report

A method in which individuals provide data about themselves, often in questionnaires or interviews.

Ceiling Effect

A situation in a study where the measurement instrument has a maximum limit, preventing higher values from being observed.

Noise Level

The intensity of background sounds in an environment, potentially affecting individuals' performance or well-being.