Question

Amanda's utility function is given by the equation u=10x+27, where x is the only good she is interested in purchasing. Given this information, what would Amanda's utility level be if she consumed one unit of x?

Answer 1

Answer:

37

Explanation:

From the given information;

if the utility function is given by:

u = 10x + 27

where;

x = one unit ( i.e. the quantity of the good she is interested in buying)

Then,

u = 10 (1) + 27

u = 10 + 27

u = 37

Thus, Amanda utility level if she consumed one unit of x = 37