Suppose the Price of Good $x$ Is $5 and the Price of Good

question 26

Multiple Choice

Suppose the price of good $x$ is $5 and the price of good $y$ is $7. Also, suppose $M M U _ { x } = y$ and $M U _ { y } = x$ . Which of the following baskets could be an interior optimum?

• A) x = 5, y = 7
• B) x = 4, y = 6
• C) x = 7, y = 5
• D) x = 6, y = 4

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Definitions:

Linear Model

A statistical approach for modeling the relationship between a scalar dependent variable and one or more independent variables by fitting a linear equation.

Scatterplot

A graphical representation using dots to show the relationship between two variables, each dot representing an observation.

Estimate

An approximation or educated guess based on partial information or data.

Data

Information collected for reference or analysis, often numeric, but can be in various forms.