A Consumer Has the Utility Function U(x, Y)= Min{x, 2y}

question 21

True/False

A consumer has the utility function U(x, y)= min{x, 2y}.If the price of good x is zero and the price of good y is p, then the consumer's demand function for good y is m/2p.

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Definitions:

Subsidy

A financial contribution granted by a government or another entity to support an industry, business, or individual, usually intended to keep prices low, support an essential service, or encourage activities beneficial to the public interest.

Tariff

A tax imposed on imported goods to either raise state revenue or protect domestic industries from foreign competition.

Quota

A government-imposed limit on the amount or value of goods that can be imported or exported during a specified time period, often used to protect domestic industries.

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses and can utilize for manufacturing.