Harold's Utility Function Is U(x, Y)= (X + 3)(y

question 9

Multiple Choice

Harold's utility function is U(x, y) = (x + 3) (y + 2) .The price of x is $1.The price of y is $2.At all incomes for which Harold consumes positive amounts of both goods, he will consume

• A)more than twice as many units of x as of y.
• B)more than twice as many units of y as of x.
• C)1 more unit of x than of y.
• D)1 more unit of y than of x.
• E)2/3 as many units of y as of x.

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Definitions:

Prior Probabilities

The probabilities of events based on prior knowledge before any new evidence is considered.

Likelihood Probabilities

The probabilities that quantify the plausibility of different parameter values for a statistical model given the observed data.

Posterior Probabilities

The probabilities that are adjusted after taking into account known or observed evidence, particularly in the context of Bayesian inference.

Addition Rule

In probability theory, a rule that calculates the probability of either of two mutually exclusive events occurring.