question archive Suppose the utility function is U (x, y) = 2x + y and Py = 2
Suppose the utility function is U (x, y) = 2x + y and Py = 2
Subject:EconomicsPrice: Bought3
Suppose the utility function is U (x, y) = 2x + y and Py = 2. Which of the following would lead the consumer to have more than one utility maximizing basket? a) P: = 2 b) Px = 1 c) Given the utility function and py, the consumer will always have only 1 utility maximizing basket. d) Px = 3 CS Sluned with CamScanner P. 18. Suppose the utility function is U (z,y) = 65"+y. Finding the intersection of the tangency condition and budget line yields y = Which of the following is true when a) The demand for y is negative. b) The demand for y is positive. The demand for y is 0. d) The demand for 3 is negative. e) The demand for r is 0. 19. Suppose that the price of good decreases. If the income offect is negative and larger in magnitude ? 1. than the substitution effect. What can we say? a) Good is a normal good.-> Pos Income effect 2Good interior in nature P1 b) None of the other answers are correct. Lancome rises Du CS S.Coope Salesi bebed. CamScanner Good is a Giffen good. Pr=09
