In Problem 6, Elmer's Utility Function Is U(x, Y) =

question 17

Multiple Choice

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $20, the price of y is $20, and Elmer chooses to consume 8 units of y, what must Elmer's income be?

• A) $2,880
• B) $320
• C) $1,540
• D) $1,440
• E) There is not enough information to tell.

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Definitions:

Obesity

A medical condition characterized by excess body fat accumulation that presents health risks, including heart disease, diabetes, and high blood pressure.

Diabetes

A group of diseases that result in too much sugar in the blood (high blood glucose) due to the body's inability to produce or properly use insulin.

Noncommunicable Diseases

Diseases that are not infectious and cannot be transferred from person to person, often chronic and lifestyle-related, such as diabetes and heart disease.

Developed Countries

Nations with advanced industrial bases, higher standards of living, and higher Human Development Index scores relative to other countries.