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

question 17

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 $10 per week and was paying a price of $8 per pair of earrings, then if the price of earrings rose to $13 per pair, the compensating variation of that price change (measured in dollars per week) would be closest to

• A)$3.57.
• B)$5.56.
• C)$12.11.
• D)$11.11.
• E)$10.11.

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Definitions:

B.F. Skinner's View

The perspective of psychologist B.F. Skinner that emphasizes the importance of reinforcement and punishment in shaping behavior, known as behaviorism.

Reinforcement

In behavioral psychology, a concept where a behavior is strengthened or increased by following it with a positive stimulus or removing a negative one.

Overextension

The act of using a word, on the basis of some shared feature, to apply to a broader range of objects than is appropriate.

Rehearsal Techniques

Methods or practices used to enhance memory retention, such as repeating information or practicing skills.