The Only Quantities of Good 1 That Barbie Can Buy

question 14

Multiple Choice

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 6) (x₂ + 4) .Then if her income were $16, her reservation price for good 1 would be

• A)$2.86.
• B)$2.50.
• C)$5.71.
• D)$1.50.
• E)$.57.

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Definitions:

Holistic Critical Thinking

An approach to critical thinking that considers the complete situation, context, or whole, rather than just its parts.

Scoring Rubric

A set of criteria and standards typically used for assessing performance on an assignment or task, guiding the evaluation process.

Criteria

Standards or principles by which something is judged or decided.

Critical Thinking

An intensive look into and decision-making on an issue aiming to derive a consensus.