Josephine's Utility Function Is U(x, Y)= Y + 5x

question 16

Multiple Choice

Josephine's utility function is U(x, y) = y + 5x^.5.She has 1 unit of x and 2 units of y.If her consumption of x is reduced to zero, how much y must she have in order to be exactly as well off as before?

• A)14 units
• B)9 units
• C)11 units
• D)7 units
• E)None of the above.

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Definitions:

Financial Planning

The process of determining short and long-term financial goals and creating strategies to meet those goals.

ACP

In financial contexts, ACP often stands for "Average Collection Period," representing the average number of days it takes for a company to receive payments from its customers.

Receivables Balance

The cumulative sum of money that customers owe to a business for products supplied or services rendered but not yet compensated for.

Credit Sales

Transactions where goods or services are sold and payment is deferred to a later date, contributing to a company's accounts receivable.