Ella's utility function is min{5x, y}.If the price of x is $10 and the price of y is $15, how much money would she need to be able to purchase a bundle that she likes as well as the bundle (x, y)= (10, 25)?
A)$209
B)$440
C)$425
D)$475
E)$85

Question

Quizplus · Accepted Answer

Ella's utility function seems to be incorrectly formatted, but assuming it's a min(x, y) type function based on the context, to find the amount of money needed for a bundle she likes as well as the bundle (10, 25), we calculate the cost of the bundle (10, 25) first. The cost is 10*$10 + 25*$15 = $100 + $375 = $475. However, since the question asks for a bundle she likes "as well as" this bundle, and given the options, it seems there might be a misunderstanding in the question's phrasing or a mistake in the calculation. Based on the provided options and assuming the calculation for the bundle (10, 25) is correct, none of the options directly match the calculated total of $475. The correct calculation for just the bundle (10, 25) at the given prices would indeed total $475, but the question might be interpreted or intended differently. Given the options and the likely intended question, there seems to be a mistake in either the question's details or in interpreting Ella's utility function and the total cost calculation. Without clearer information on Ella's preferences beyond the (10, 25) bundle, accurately determining the total money needed for another bundle she likes is not possible with the given details.

Ella's Utility Function Is Min{5x, Y}