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Mary's Utility Function Is U(x,y)= 4x1/2 + Y

Question 46

Multiple Choice

Mary's utility function is U(x,y) = 4x1/2 + y. She has 25 units of x and 12 units of y. If her consumption of x is reduced to 0, how many units of y would she need in order to be exactly as well off as before?


A) 112 units
B) 32 units
C) 37 units
D) 48 units

Correct Answer:

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