The Only Quantities of Good 1 That Barbie Can Buy

question 79

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 + 4) (x₂ + 18) .Then if her income were $16, her reservation price for good 1 would be

• A)$13.60.
• B)$6.80.
• C)$9.50.
• D)$0.22.
• E)$4.40.

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Definitions:

Negligently

The failure to take reasonable care to avoid causing injury or loss to another person, resulting from the lack of attention or due diligence.

Liability

A legal obligation or responsibility to make restitution or compensation for harm or damage caused to another party.

Restatement Second Torts

A legal document summarizing the common law of torts in the United States, aimed at clarifying, modernizing, and otherwise improving the law.

Licensee

A licensee is an individual or entity that has been granted the right by a licensor to engage in certain activities or use certain property that belongs to the licensor.