In Problem 6, the Only Quantities of Good 1 That

question 16

Multiple Choice

In Problem 6, the only quantities of good 1 that Barbie can buy are 1 unit or zero units. For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 10) (x₂ + 12) . Then if her income were $4, her reservation price for good 1 would be

• A) $2.91.
• B) $6.50.
• C) $1.45.
• D) $.83.
• E) $1.10.

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Definitions:

William Syndrome

A genetic disorder characterized by developmental delays, cardiovascular disease, and distinctive facial features, often with a friendly personality.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Autism

A developmental disorder characterized by difficulties with social interaction, communication, and restricted or repetitive behaviors.

Neural Darwinism

Hypothesis that the processes of cell death and synaptic pruning are, like natural selection in species, the outcome of competition among neurons for connections and metabolic resources in a neural environment.