Consider an agent whose preferences over any couple (r1, r2), where ri E R+ and r2 E R4, e.g., apples and oranges, is such that she prefers the bundle that is closest to having the same number of apples and oranges. Write a utility function u : R → R, which represent these preferences.

Consider an agent whose preferences over any couple (r1, r2), where ri E R+ and r2 E R4, e.g., apples and oranges, is such that she prefers the bundle that is closest to having the same number of apples and oranges. Write a utility function u : R → R, which represent these preferences.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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Consider an agent whose preferences over any couple (¤1, 12), where r1 E R4
and r2 E R+, e.g., apples and oranges, is such that she prefers the bundle that is closest to
having the same number of apples and.oranges. Write a utility function u : R → R, which
represent these preferences.

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