Suppose the Consumer's Utility Function Is Given by U(x,y) = $x$

question 16

Multiple Choice

Suppose the consumer's utility function is given by U(x,y) = xy + y where MU_x = y MU_y = x+1 The equation for this consumer's demand curve for $x$ when I > P_x is

• A) x^d = 0
• B) x^d = \(\frac { I } { 2 P _ { x } }\)
• C) x^d = \(\frac { I } { 2 P _ { x } }\) -\(\frac { 1 } { 2 }\)
• D) x^d = 1/2

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, triggers a conditioned response.

Counterconditioning

A classical conditioning procedure for changing the relationship between a conditioned stimulus and its conditioned response.

Classical-Conditioning Procedure

A pairing method of learning where two stimuli when frequently associated, lead to a response initially prompted by the second stimulus but subsequently by the first stimulus alone.

Conditioned Stimulus

A formerly neutral signal that, once it is linked with an unconditioned stimulus, ultimately leads to eliciting a conditioned response.