Desiree's Utility Function for BMWs and Money Is Given by 9,000x

question 14

Multiple Choice

Desiree's utility function for BMWs and money is given by 9,000x + y, where x is the number of BMWs she has and y is the amount of money she has. Her income is $22,000. Her reservation price for one BMW is

• A) $9,000 - p.
• B) $9,000.
• C) $13,000.
• D) $9,000 - y.
• E) $31,000.

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Definitions:

Note Receivable

A promissory note held by the creditor, evidencing a debtor's obligation to pay back a loan or other credit extended.

Sells

The act of giving up ownership of an asset in exchange for money or equivalent.

Car

A car is a wheeled motor vehicle used for transportation, typically designed to run primarily on roads and to seat a small number of people.

Legal Services

Legal services encompass a broad range of activities involving advice, representation, or both in legal matters by a qualified professional.