Yoram's Utility Function Is U(x, Y) = 2x + 5y

question 3

Multiple Choice

Yoram's utility function is U(x, y) = 2x + 5y. The price of x is $4 and the price of y is $15. Yoram has $150 a week to spend on x and y. Yoram is offered a chance to join a club of y consumers. If he joins, he can get y at a price of $10. What is the most that Yoram would be willing to pay to join the club?

• A) Nothing
• B) $30 a week
• C) $50 a week
• D) $75 a week
• E) None of the above.

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Definitions:

Processor Speeds

The rate at which a computer's CPU executes instructions, typically measured in gigahertz (GHz), indicating billions of cycles per second.

Megabyte

A unit of data measurement equal to approximately one million bytes, often used to measure file size or storage capacity.

Bytes

A basic unit of digital information in computing and telecommunications, typically consisting of 8 bits.