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Elmer's Utility Function Is U(x, Y)= Min{x, Y2}

Question 9

Multiple Choice

Elmer's utility function is U(x, y) = min{x, y2}.If the price of x is $15, the price of y is $20, and Elmer chooses to consume 7 units of y, what must Elmer's income be?


A) $245
B) $1,750
C) $975
D) $875
E) There is not enough information to tell.

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