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

question 27

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:

Arms

Upper limbs of the human body, extending from the shoulders to the hands, used for grasping and manipulation.

Ascending Pathway

Neural paths that transmit sensory information from the body to the brain.

Secondary Neuron

A neuron that receives a synaptic input from primary neurons and transmits the signal to other neurons or muscles.