Doreen Has Preferences Represented by the Utility Function U(x, Y)=

question 10

Multiple Choice

Doreen has preferences represented by the utility function U(x, y) = 10x + 5y.She consumes 10 units of good x and 9 units of good y.If her consumption of good x is lowered to 1, how many units of y must she have in order to be exactly as well off as before?

• A)20
• B)30
• C)27
• D)18
• E)None of the above.

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Definitions:

Object Vanish

A phenomenon or trick where an object appears to disappear from perception, often used in magic or psychological experiments.

Lens Accommodates

The process by which the eye's lens changes shape to focus on objects at different distances.

Weber's Law

A principle in psychology that states the smallest change in a stimulus, such as weight or brightness, that can be detected is a constant proportion of the stimulus level.

Constant Proportion

A principle that, in a specific context, a relationship between certain quantities remains consistent, irrespective of changes in other variables.