In Problem 7, Lolita's Utility Function Is U(x, Y)

question 10

Multiple Choice

In Problem 7, Lolita's utility function is U(x, y) , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.10, the price of hay is $1, and her income is $2 and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

• A) 0.40.
• B) 3.40.
• C) 2.40.
• D) 1.90.
• E) 1.40.

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Definitions:

Conscious Awareness

The mental state of being fully present and aware of thoughts, feelings, sensations, and the environment.

Absolute Threshold

The minimum intensity of stimulus that can be detected by the sensory systems, below which the stimulus is not perceived.

Hearing Ability

The capability to perceive sound by detecting vibrations through an organism's ear or analogous sensory organs.

Improves

To become better or to make something better in quality, value, or performance.