Find the Critical Point(s) of the Function

question 130

Multiple Choice

Find the critical point(s) of the function. Then use the second derivative test to classify the nature of each point, if possible. Finally, determine the relative extrema of the function.

• A) (0, 0); saddle point: f(0, 0) = - 5
• B) (1, 0); relative maximum value: f(1, 0) = 5
• C) (0, - 1); relative minimum value: f(0, - 1) = - 6
• D) there are no critical points

Analyze the effects of macroeconomic factors (e.g., housing market trends, stock market changes) on personal wealth and consumer confidence.

Apply the marginal propensity to consume and save in practical scenarios to determine saving and spending outcomes.

Examine the role of consumer spending in economic growth and the effects of changes in this spending.

Identify and explain major economic theories related to consumer behavior, including the Permanent Income Hypothesis.

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Definitions:

Price Supports

are government-implemented mechanisms designed to maintain the market price of a good at a certain level to benefit producers.

Overallocation

The process of distributing or assigning more resources or rights than are available, often leading to shortages or conflicts.

Underallocation

A situation in which resources are not distributed efficiently, often leading to a failure to meet demand for certain goods or services.

Farm Subsidies

Government aid provided to farmers to boost their income, regulate the production of farm products, and affect the price and availability of these commodities.