Darlene's utility function is U(x, y, z)  x 3 y 7 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 3 y 7 z.If her income doubles and prices remain unchanged, her demand for good y will more than double.

Zarnaz Zandi · Accepted Answer

Final Answer : False, Explanation :  Darlene's utility function does not specify how her demand for good y changes with income, but typically, without specific information on the type of good y is (normal, inferior, luxury), we cannot conclude that her demand for good y will more than double just because her income doubles. Demand changes depend on the income elasticity of demand for the good, which cannot be determined from the given utility function alone.

Darlene's utility function is U(x, y, z) x³y⁷z.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) x3y7z.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) x³y⁷z.If her income doubles and prices remain unchanged, her demand for good y will more than double.