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:

Mean

The arithmetic average of a dataset, found by adding all the numbers in the set and dividing by the count of numbers.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population using the standard deviation.

Mean

The mean of a series of numbers, determined by dividing their total sum by the quantity of numbers in the series.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the true population parameter with a given level of confidence.