Elmer's Utility Function Is U(x, Y)= Min{x, Y²}

question 10

Multiple Choice

Elmer's utility function is U(x, y) = min{x, y²}.If the price of x is $15, the price of y is $30, and Elmer chooses to consume 2 units of y, what must Elmer's income be?

• A)$240
• B)$90
• C)$220
• D)$120
• E)There is not enough information to tell.

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Definitions:

Medical Expenses

Costs for healthcare services, treatments, surgeries, and preventive care deductible under certain conditions on personal tax returns.

Periodic Payments

Regularly scheduled payments, often associated with loans, annuities, or settlements, that occur over a period of time.

Divorce Agreement

A divorce agreement is a legally binding document outlining the division of assets, debts, and other obligations between spouses upon the dissolution of their marriage.

Above-the-line Deduction

Deductions from gross income that are made before the calculation of taxable income, directly reducing the gross income amount.