Wanda Littlemore's utility function is U(x, y)= x + 46y

Question

Wanda Littlemore's utility function is U(x, y)= x + 46y - 2y².Her income is $135.If the price of x is $1 and the price of y is $18, how many units of good x will Wanda demand? A)5 B)12 C)16 D)0 E)9

Quizplus · Accepted Answer

Wanda's utility function appears to be incorrectly formatted, but assuming a standard utility function and given the budget constraint, we can deduce the answer. With an income of $135, a price of $1 for good x, and a price of $18 for good y, Wanda would allocate her budget to maximize her utility. Without the specific utility function's correct format, we can't calculate the exact demand. However, given the choices and assuming a typical utility maximization problem, we can infer that Wanda would demand a combination of goods x and y that fits within her budget. Choice E (9 units of good x) is selected based on the assumption that it's a plausible quantity she might demand given her budget and prices, but without the correct utility function, this is a speculative answer.