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Homework answers / question archive / Aishwarya has preferences represented by the utility function U(x,y) = 20x+5y
Aishwarya has preferences represented by the utility function U(x,y) = 20x+5y. She consumes 20 units of good x and 4 units of good y. If her consumption of good x is lowered to 13, how many units of y must she have in order to be exactly as well off as before?
A. 37 units of good y
B. 22 units of good y
C. 32 units of good y
D. 4 units of good y
E. None of the above
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