Lolita's Utility Function Is U(x, Y)=x - X²/2+ Y, Where

question 26

Multiple Choice

Lolita's utility function is U(x, y) =x - x²/2+ y, where x is her consumption of cow feed and y is her consumption of hay.If the price of cow feed is $.60, the price of hay is $1, and her income is $4 and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

• A)4.08.
• B)3.40.
• C)0.08.
• D)6.08.
• E)2.08.

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