Angela's utility function is x + y^1/2.It is possible that if her income is very high, an increase in income will not make her spend more on y.

Question

Quizplus · Accepted Answer

This is possible if the coefficient of y in the utility function is 0 or negative. In this case, an increase in income will not lead to an increase in the consumption of y because the marginal utility of y is already zero or negative.

Angela's Utility Function Is X + Y1/2

Angela's Utility Function Is X + Y^1/2