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:

Work Sharing

An employment strategy that reduces work hours for a group of employees as an alternative to layoffs, aiming to distribute available work during downturns.

Labour Costs

Expenses related to compensating employees, including wages, salaries, benefits, and payroll taxes, significant for budgeting and financial planning.

Earnings Loss

The reduction in an individual's or entity's income, which can result from factors like unemployment, underemployment, or business downturns.

Destructive Stress

Impairs the performance of an individual.