The Only Quantities of Good 1 That Tomoko Can Buy

question 100

Multiple Choice

The only quantities of good 1 that Tomoko can buy are 1 unit or 0 units.For all positive values of x₂, Tomoko's preferences are represented by the utility function (x₁ + 14) (x₂ + 16) .If her income is $20 and the price of good 2 is $1, then Tomoko's reservation price for good 1 is

• A)$.88.
• B)$8.50.
• C)$2.40.
• D)$4.80.
• E)$1.04.

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Definitions:

Quantified Existential

A logical expression that asserts the existence of at least one instance of a certain property or classification.

Open Sentence

An algebraic expression that contains at least one variable and becomes either true or false when specific values are substituted for the variables.

Closed Sentence

In logic and mathematics, a statement or expression that is either always true or always false, containing no free variables.

Constant

A value that does not change in mathematical expressions or in programming, it represents fixed values.