Bernice Has the Utility Function U(x, Y)= Min{x, Y}, Where

question 1

Multiple Choice

Bernice has the utility function u(x, y) = min{x, y}, where x is the number of pairs of earrings she buys per week and y is the number of dollars per week she has left to spend on other things.(We allow the possibility that she buys fractional numbers of pairs of earrings per week.) If she originally had an income of $18 per week and was paying a price of $8 per pair of earrings, then if the price of earrings rose to $14, the compensating variation of that price change (measured in dollars per week) would be closest to

• A)$12.
• B)$25.
• C)$7.20.
• D)$24.
• E)$23.

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Definitions:

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the specific stimulus conditioned.

Generalization Gradient

Refers to the decrease in response strength as stimuli become less similar to the conditioned stimulus in classical or operant conditioning.

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, and in the absence of which that response will not be reinforced.