Ella's Utility Function Is Min{ 5x, Y}

question 23

Multiple Choice

Ella's utility function is min{ 5x, y}. If the price of x is $10 and the price of y is $15, how much money would she need to be able to purchase a bundle that she likes as well as the bundle (x, y) = (10, 25) ?

• A) $209
• B) $440
• C) $425
• D) $475
• E) $85

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Definitions:

Semi-Annually

A term indicating something occurs twice a year.

Endowment Fund

A financial asset, often in the form of a donation to institutions, where the principal remains intact and only the investment income is used.

Monthly Grants

Financial assistance or funds distributed on a monthly basis to individuals, organizations, or projects.

Compounded Semi-Annually

A frequency of interest calculation where the interest is added to the principal every six months, resulting in earning interest on interest in the second half of the year.