Lolita, the Holstein cow, has a utility function is , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.30, the price of hay is $1, and her income is $4, and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be
A) 4.25.
B) 3.70.
C) 0.25.
D) 6.25.
E) 2.25.

Question

Lolita, the Holstein cow, has a utility function is  , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.30, the price of hay is $1, and her income is $4, and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be
A) 4.25. 
B) 3.70. 
C) 0.25. 
D) 6.25. 
E) 2.25.

Quizplus · Accepted Answer

The Answer of Lolita, the Holstein cow, has a utility function is  , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.30, the price of hay is $1, and her income is $4, and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be
A) 4.25. 
B) 3.70. 
C) 0.25. 
D) 6.25. 
E) 2.25.

Lolita, the Holstein Cow, Has a Utility Function Is