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) = 8 if y is 1 or greater.The price of tapes is $1 and she can easily afford to buy dozens of tapes.How many tapes will she buy?
A) 18
B) 14
C) 16
D) 20
E) We need to know the price of tape recorders to solve this problem.
Correct Answer:
Verified
Correct Answer:
Verified
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