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

question 24

Multiple Choice

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $15, the price of y is $30, and Elmer chooses to consume 2 units of y, what must Elmer's income be?

• A) $240
• B) $90
• C) $220
• D) $120
• E) There is not enough information to tell.

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Definitions:

Conducting Business

The act of engaging in activities that produce goods or services to satisfy consumer demand and generate profit.

Transparency

The practice of being open, honest, and straightforward about various activities, making information accessible and understandable to stakeholders.

Stakeholder Responsibility

The obligations that individuals, groups, or organizations have towards others within and outside an organization who are affected by or have an interest in their actions and decisions.

Obligations

Duties or commitments that an individual or organization is bound to fulfil, often legally or morally.