Refer to the data. What level of total utility will the utility-maximizing consumer realize?
Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.
A. 96 utils.
B. 108 utils.
C. 72 utils.
D. 142 utils.
A. 96 utils.
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An effective way to restore credibility to monetary authorities after a period of hyperinflation is
A) the introduction of a new monetary unit. B) the introduction of wage and price controls. C) a reduction in bank reserve requirements. D) the centralization of monetary and fiscal policy under a single governmental unit.
Use the equation Qd = 5,000 - 15P + 50A + 3Px - 4I, (2,117 ) (2.7 ) (15 ) (2 ) (3 )
where Qd = Quantity Demanded, P = Good Price, A = Advertising Expenditures, Px = Price of a Competitive Good, A = Advertising Expenditures, I = Average Monthly Income, and the Standard Errors of the Regression Coefficients are shown in Parentheses. Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?