Clara's Utility Function Is U(X, Y)=(X + 2)(Y + 1)

question 5

Multiple Choice

Clara's utility function is U(X, Y) =(X + 2) (Y + 1) .If Clara's marginal rate of substitution is -6 and she is consuming 8 units of good X, how many units of good Y is she consuming?

• A)14
• B)60
• C)59
• D)6
• E)13

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Definitions:

Dual Lines

A structure or system that involves two parallel paths or channels, which can facilitate processes or communication.

Force Field Analysis

A decision-making tool used to analyze the forces for and against a change, helping to identify the factors that must be addressed to achieve successful change.

Restraining Forces

Factors that counteract changes and impede progress in an organization or system.

Mechanistic Model

A formalized structure based on centralization and departmentalization.