The only quantities of good 1 that Tomoko can buy are 1 unit or 0 units.For all positive values of x₂, Tomoko's preferences are represented by the utility function (x₁ + 14)(x₂ + 16).If her income is $20 and the price of good 2 is $1, then Tomoko's reservation price for good 1 is A)$.88. B)$8.50. C)$2.40. D)$4.80. E)$1.04.

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The Answer of The only quantities of good 1 that Tomoko can buy are 1 unit or 0 units.For all positive values of x₂, Tomoko's preferences are represented by the utility function (x₁ + 14)(x₂ + 16).If her income is $20 and the price of good 2 is $1, then Tomoko's reservation price for good 1 is A)$.88. B)$8.50. C)$2.40. D)$4.80. E)$1.04.

The Only Quantities of Good 1 That Tomoko Can Buy