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

question 12

Multiple Choice

Clara's utility function is U(X, Y) = (X + 2) (Y + 1) .If Clara's marginal rate of substitution is -4 and she is consuming 10 units of good X, how many units of good Y is she consuming?

• A)48
• B)14
• C)4
• D)47
• E)9

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Definitions:

Total Equity

The total of all ownership interests in a company, calculated as the difference between total assets and total liabilities; also known as shareholders' equity or owner's equity.

Bonds Outstanding

Bonds outstanding are the total amount of bonds issued by a company that are not yet redeemed and are currently held by investors.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in commercial, industrial, or professional activities.

Sweetener

An additional enticement or incentive provided to make an offer or deal more attractive, often seen in financial agreements.