The Only Quantities of Good 1 That Barbie Can Buy

question 79

Multiple Choice

The only quantities of good 1 that Barbie can buy are 1 unit or 0 units.For x₁ equal to 0 or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 4) (x₂ + 18) .Then if her income were $16, her reservation price for good 1 would be

• A)$13.60.
• B)$6.80.
• C)$9.50.
• D)$0.22.
• E)$4.40.

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Definitions:

Theory of Work Adjustment

A psychological theory explaining how workers adjust to their jobs by balancing their abilities with job demands and their needs with job rewards.

Celerity

The quality of being quick or prompt; swiftness of action or motion.

Endurance

Sustaining of interaction with the environment.

Minnesota Importance Questionnaire

A psychological assessment tool designed to measure an individual's work values and importance placed on various aspects of work.