Multiple Choice
Daisy received a tape recorder as a birthday gift and is not able to return it.Her utility function is U(x, y, z) = x + z1/2 f(y) , where z is the number of tapes she buys, y is the number of tape recorders she has, and x is the amount of money she has left to spend.f(y) = 0 if y < 1 and f(y) = 24 if y is 1 or greater.The price of tapes is $4 and she can easily afford to buy dozens of tapes.How many tapes will she buy?
A) 9
B) 11
C) 7
D) 13
E) We need to know the price of tape recorders to solve this problem.
Correct Answer:
Verified
Correct Answer:
Verified
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