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Wilma Q Has a Utility Function U(x1, X2) = X21

Question 56

Multiple Choice

Wilma Q. has a utility function U(x1, x2) = x21 + 1.5x1x2 + 30x2. The prices are p1 = $1 and p2 = $1. For incomes between $20 and $60, the Engel curve for good 2 is


A) upward sloping.
B) downward sloping.
C) vertical.
D) upward sloping for incomes between $20 and $40 and downward sloping between $40 and $60.
E) downward sloping for incomes between $20 and $40 and upward sloping between $40 and $60.

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