The Only Quantities of Good 1 That Barbie Can Buy

question 75

Multiple Choice

The only quantities of good 1 that Barbie can buy are 1 unit or 0 units.For x₁ equal to 0 or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 8) (x₂ + 16) .Then if her income were $4, her reservation price for good 1 would be

• A)$4.44.
• B)$8.50.
• C)$2.22.
• D)$.50.
• E)$1.90.

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Definitions:

Health Care

Services provided by medical professionals to maintain or improve an individual's health, including prevention, diagnosis, treatment, and recovery.

Infant Mortality

The death of children under the age of one year, measured by the infant mortality rate, an essential indicator of a nation's health status.

Sanitation Improvements

Enhancements made to reduce exposure to hazards that can cause human injury or disease through safe water, proper waste disposal, and hygiene practices.

Western Countries

Nations typically located in the Western hemisphere, often characterized by democratic forms of government, industrial economies, and certain cultural norms.