2. 2. Calculation: Multiple choice question: only one correct answer for each choosee (a)e A consumer preferences are given by U(x1,x2)= x1+x2 These preferences are described as _ O perfect substitutes O perfect complements Cobb-Douglas O quasi Linear

2. 2. Calculation: Multiple choice question: only one correct answer for each choosee (a)e A consumer preferences are given by U(x1,x2)= x1+x2 These preferences are described as _ O perfect substitutes O perfect complements Cobb-Douglas O quasi Linear

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.14P

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The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

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