Darlene's utility function is U(x, y, z)  x 4 y 8 z.If her income doubles and prices remain unchanged, her demand for good y will more than double.

Question

Darlene's utility function is U(x, y, z)   x  4 y  8 z.If her income doubles and prices remain unchanged, her demand for good y will more than double.

Luciano Dilisciandro · Accepted Answer

Final Answer : False, Explanation :  Darlene's utility function does not provide enough information to determine how her demand for good y will change if her income doubles. Demand changes depend on the specific form of the utility function and the properties of the goods (e.g., whether they are normal goods, inferior goods, etc.), which are not specified in the provided utility function expression.

Darlene's utility function is U(x, y, z) x ⁴y ⁸z.If her income doubles and prices remain unchanged, her demand for good y will more than double.

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Darlene's utility function is U(x, y, z) x 4y 8z.If her income doubles and prices remain unchanged, her demand for good y will more than double.

Definitions

Learning Objectives

Learning Objectives

Related questions

Darlene's utility function is U(x, y, z) x ⁴y ⁸z.If her income doubles and prices remain unchanged, her demand for good y will more than double.