Let W Be the Number of Whips and J the Number

question 10

Multiple Choice

Let w be the number of whips and j the number of leather jackets.If Kinko's utility function is U(x, y) =min{7w, 4w + 12j}, then if the price of whips is $20 and the price of leather jackets is $40, Kinko will demand

• A)6 times as many whips as leather jackets.
• B)5 times as many leather jackets as whips.
• C)3 times as many whips as leather jackets.
• D)4 times as many whips as leather jackets.
• E)only leather jackets.

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Definitions:

Trade Deficit

A scenario in which a country buys more goods and services from abroad than it sells to other countries, resulting in a negative trade balance.

Merchandise

Goods or products that are bought, sold, or traded, often in a retail environment.

Comparative Advantage

The capacity of a person or a team to perform a specific financial task more effectively than other tasks.

Consumption Habits

The patterns or behaviors of individuals or groups in purchasing and using goods and services.