Lucy's Utility Function Is 2X_L + G and Melvin's Utility

question 16

Multiple Choice

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $30,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000.How much do they spent on public goods?

• A)$7,000
• B)$14,000
• C)$8,050
• D)$3,500
• E)There is not enough information here to be able to determine the answer.

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Definitions:

Unrelated Items

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Hippocampus

An essential part of the brain associated with memory formation, especially long-term memory, and spatial navigation.

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A type of long-term memory that involves the recollection of facts, information, and events.