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:

Voluntary Contract

An agreement entered into freely by parties who are capable of making their own choices and decisions, without coercion.

Business Operation

Refers to the day-to-day activities that companies engage in to increase the value of their business and earn a profit.

Proportionately Shared

Distributed or divided among parties in correlation to their respective shares or involvement.

Corporate Officer

An individual appointed by the board of directors of a corporation who is granted certain powers and responsibilities in managing the company.