Economics

suppose that Quazi gets utility from only two goods, xylophones (x) and yoghurt (y). His preferences are represented by the utility functionU(x,y) = 1 + (xy³)³.

Suppose the price of xylophones is p_xand the price of yoghurt is p_y. Quazi's optimal bundle must satisfy the equation

p_yy = k p_xx,

where k is an integer. What is the value of k?

Select one:

a. 0

b. 1

c. 2

d. 3

e. 4

f. 5

g. 6

h. 7

i. 8

j. 9

k. 10

l. 11

m. 12

n. 13

o. 14

p. 15

q. 16

Suppose Quazi's income is 60,000, the price of xylophones is 7500 is and the price of yoghurt is 3. How many units ofxylophoneswill Quazi choose?

Select one:

a. 0

b. 1

c. 2

d. 3

e. 4

f. 5

g. 6

h. 7

i. 8

j. 9

k. 10

l. 11

m. 12

n. 13

o. 14

p. 15

q. 16

Suppose Quazi's income is 60,000, the price of xylophones is 7500 is and the price of yoghurt is 3. What is Quazi's cross-price elasticity of demand for xylophones, with respect to the price of yoghurt?

Select one:

a. 0

b. 1

c. 2

d. 3

e. 4

f. 5

g. 6

h. 7

i. 8

j. 9

k. 10

l. 11

m. 12

n. 13

o. 14

p. 15

q. 16