Elmer's utility function is U(x, y)=min{x, y²}.If the price of x is $10 and the price of y is $15 and if Elmer chooses to consume 4 units of y, what must his income be? A)$220 B)$100 C)$320 D)$440 E)There is not enough information to determine his income.

Question

Quizplus · Accepted Answer

Elmer's income must be at least $220 to afford 4 units of y and some amount of x.

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

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