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Donald Consumes Goods X and Y

Question 10

Multiple Choice

Donald consumes goods x and y. His utility function is U(x, y) = xy3. He is endowed with 10 units of x and 15 units of y. The price of x is $1 and the price of y is $2. Find his net demand for x.


A) 15
B) 0
C) 12
D) -3
E) 20

Correct Answer:

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