Sarah Has the Utility Function U(X,Y)= X

question 8

Multiple Choice

Sarah has the utility function U(X,Y) = X^.5Y^.25.When Sarah consumes X = 2 and Y = 6 she has a marginal rate of substitution of

• A)-12.
• B)-1/6.
• C)-6.
• D)-1/12.

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Definitions:

Induction

A process of reasoning from specific cases to general principles or the formal introduction of a person into a position or organization.

Competitor's Product

A good or service offered by a business rival in the same market aiming to satisfy the same customer need or demand.

Persuade

To convince someone to do or believe something through reasoning or argument.

Hasty Generalizations

Logical fallacies where a conclusion is drawn from insufficient evidence, often leading to stereotypes or unwarranted judgments.