Suppose the Consumer's Utility Function Is Given by U(x,y) = $\frac { I } { 2 P _ { y } }$

question 29

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 y when I < P_x is

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

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Definitions:

Asset Account

An account that represents a tangible or intangible item of value owned by a company, such as cash, inventory, or equipment.

Revenue Account

An account that records the income earned from normal business operations, such as sales of goods or services.

Liability Account

An account recording a company's debts or obligations arising from past transactions or events.

Posting

Posting is the process of recording financial transactions from the journal to the respective ledger accounts, providing a detailed account of all business operations.