The Only Quantities of Good 1 That Barbie Can Buy

question 7

Multiple Choice

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 10) (x₂ + 12) .Then if her income were $4, her reservation price for good 1 would be

• A)$2.91.
• B)$6.50.
• C)$1.45.
• D)$.83.
• E)$1.10.

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