Howard Has the Utility Function U(x, Y)= X - (1/y)

question 18

Multiple Choice

Howard has the utility function U(x, y) = x - (1/y) .His income is $30.

• A)Howard does not like good y.
• B)Howard has a bliss point.
• C)If the price of good x is $4 and the price of good y is $1, Howard will buy 2 units of y.
• D)Howard will buy good y only if it is cheaper than good x.
• E)None of the above.

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid by a specified date.

Issue Price

Issue price is the cost at which new securities are offered to the public by an issuer, determining the initial capital raised from the financial market.

Par Value

The nominal or face value of a security as indicated by the issuer.

Liabilities

Financial obligations or debts owed by a business to another entity, payable in the future.