A consumer consumes only two goods x and y. Her utility function is U(x, y) = x + y . Her budget constraint is px + y = 10 where p is the price of good x. If p = 1/2 , then the (absolute) own – price elasticity of good x is
(A) 0; (B)1/2 ; (C) 1; (D) ∞
Locked
