15. Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices of both goods are positive. He will a. never buy more x than y. b. buy equal amounts of the two goods. c. always buy more y than x. d. always buy more x than y. e. More than one of the above is true.

15. Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices of both goods are positive. He will a. never buy more x than y. b. buy equal amounts of the two goods. c. always buy more y than x. d. always buy more x than y. e. More than one of the above is true.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2.5P

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15. Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices of both goods are positive. He will

a. never buy more x than y.

b. buy equal amounts of the two goods.

c. always buy more y than x.

d. always buy more x than y.

e. More than one of the above is true.

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