Abduls Utility Is U(X A, Y A)= Min{X A, Y

question 18

Multiple Choice

Abduls utility is U(X A, Y A) = min{X A, Y A}, where X A and Y A are his consumptions of goods X and Y respectively.Babettes utility function is U(X B, Y B) = X B Y B, where X B and Y B are her consumptions of goods X and Y.Abduls initial endowment is no units of Y and 7 units of X.Babettes initial endowment is no units of X and 6 units of Y.If X is the numeraire good and p is the price of good Y, then supply will equal demand in the market for Y if

• A)min{7, 6} + 7/2p = 6.
• B)7/(p + 1)+ 3 = 6.
• C)6/7 = p.
• D)6/(p + 1)+ 3.50 = 6.
• E)min{7, 6} + 6/2p = 6.

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Definitions:

External-unstable Factor

refers to outside influences that can affect behavior or outcomes but are inconsistent and unpredictable, such as luck or chance.

Pessimistic Explanatory

A cognitive style where individuals habitually attribute negative events to stable, global, and internal causes.

Internal

Pertaining to or occurring within an individual’s mind or self.

Internal Causes

denotes reasons or factors within an individual, such as personal beliefs or emotions, that can influence their behavior or attitude.