Bernice Has the Utility Function U(x, Y) = Min{x, Y}

question 33

True/False

Bernice has the utility function U(x, y) = min{x, y}. The price of x used to be 3 but rose to 4. The price of y remained at 1. Her income is 12. The price increase was as bad for her as a loss of $3 in income.

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Definitions:

Work

An activity involving mental or physical effort done in order to achieve a purpose or result, often associated with a profession or job.

Post-Technological

Referring to a conceptual future or theoretical state beyond current technological advancements and dependencies.

Secondary Sector

The portion of an economy that is concerned with the processing of raw materials obtained by the primary sector into goods and products.

Economy

The system of production, consumption, and distribution of goods and services within a particular geographic region.