A Consumer Has the Utility Function U(x, Y)= X

question 5

True/False

A consumer has the utility function U(x, y)= x + 2y^1/2.The price of good x is 2 and the price of good y is 1.The consumer's income is 20.If the price of good y rises to 2, then entire change in demand for y is due to the substitution effect.

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Definitions:

Criterion Variable

Another term for the dependent variable, it's the outcome variable that researchers are interested in predicting or explaining.

Regression

A statistical method to model the relationship between a dependent variable and one or more independent variables, predicting the value of the dependent variable based on the independents.

Predict

To make an informed guess about the future state or outcome based on current data or patterns.

Regression Equation

An equation that represents the relationship between a dependent variable and one or more independent variables.