7. Kendal has the utility function U(x,x2)=4x +x2. If Kendal were initially consuming 25 units of nuts and 18 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 11 units of nuts? 1/2 a) b) 24 c) 4 d) 2 e) 1
7. Kendal has the utility function U(x,x2)=4x +x2. If Kendal were initially consuming 25 units of nuts and 18 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 11 units of nuts? 1/2 a) b) 24 c) 4 d) 2 e) 1
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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Transcribed Image Text:7. Kendal has the utility function U(x,x,)=4x +x,. If Kendal were initially consuming
25 units of nuts and 18 units of berries, then what is the largest number of berries that he
would be willing to give up in return for an additional 11 units of nuts?
1/2
a) 6
b) 24
c) 4
d) 2
1
Transcribed Image Text:5. A
has
preferences
represented
by
the
utility
function
consumer
U(x,x2) =10(x
+2x,x2 +x-50. For this consumer, goods 1 and 2 are perfect
%3D
substitutes.
6. A person with the utility function U(x,x,) =min(x +2x,,2x +x,) has convex, but not
strictly convex preferences.
%3D
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