On the Planet Hyperion Every Consumer Who Has Ever Lived

question 14

Multiple Choice

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min{x, 2y}. The currency of Hyperion is the doggerel. In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit. In 2000, the price of x was 4 doggerels per unit and the price of y was 4 doggerels per unit. The Paasche price index of prices in 2000 relative to prices in 1850 is

• A) 2.
• B) 3.
• C) 1.
• D) 2.67.
• E) not possible to determine without further information.

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Definitions:

Serotonin Nerve Fibers

Neurons that transmit serotonin, a neurotransmitter involved in many functions, including mood regulation, digestion, and the sleep-wake cycle.

Toxic Effects

Harmful effects caused by substances that can lead to health problems or pose a threat to biological organisms.

Adverse Childhood Experiences

Potentially traumatic events that occur in childhood, such as abuse or neglect, which can have long-term effects on health and well-being.

Drug Addiction

A chronic disorder characterized by compulsive drug seeking and use, leading to significant brain changes and behavioral consequences despite harmful effects.