In Problem 6, the Only Quantities of Good 1 That

question 5

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 + 4) . Then if her income were $12, her reservation price for good 1 would be

• A) $2.50.
• B) $1.45.
• C) $2.91.
• D) $2.50
• E) $.30.

---

Definitions:

Right Parietal Lobe

A region of the brain associated with processing visual information and spatial orientation.

Visual Space

The perceptual space surrounding an individual in which objects are visually perceived and oriented.

Controlled Process

A type of mental activity that requires conscious thought, often demanding effort and attention to perform.

Telegraph Message

A communication transmitted via telegraph, a device for sending messages over long distances using a system of codes or Morse code.