In Problem 2, Clara's Utility Function Is U(X, Y) =

question 27

Multiple Choice

In Problem 2, Clara's utility function is U(X, Y) = (X + 2) (Y + 1) . If Clara's marginal rate of substitution is -2 and she is consuming 10 units of good X, how many units of good Y is she consuming?

• A) 2
• B) 24
• C) 12
• D) 23
• E) 5

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Definitions:

Perceptual Tendencies

The natural biases or inclinations in the way people perceive and interpret information from their environment.

Sensing

The process of receiving and interpreting information through the five senses to understand and interact with the environment.

Gathering Data

The process of collecting information or facts from various sources to be used for analysis or decision-making.

Big Picture

An overall perspective or an understanding of how all the parts of a situation, project, or problem fit together.