Cindy's Utility Function for BMWs and Money Is Given by 19,000x

question 28

Multiple Choice

Cindy's utility function for BMWs and money is given by 19,000x + y, where x is the number of BMWs she has and y is the amount of money she has. Her income is $24,000. Her reservation price for one BMW is

• A) $19,000.
• B) $19,000 - y.
• C) $5,000.
• D) $19,000 - p.
• E) $43,000.

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Definitions:

Teff

A grain native to Ethiopia and Eritrea, known for its nutritional properties and used to make traditional dishes like injera.

Newsprint

A low-cost, non-archival paper commonly used for newspapers and other publications.

Supply

The total amount of a specific good or service that is available to consumers, usually determined by price, production costs, and market demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price.