Consider the following utility function и(х, у) — Зх + 4у a. Is the utility function homothetic? Explain. b. Under what condition will the consumer purchase good x alone?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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Consider the following utility function
и(х, у) %3 3х + 4y
a. Is the utility function homothetic? Explain.
b. Under what condition will the consumer purchase good x alone?
Transcribed Image Text:Consider the following utility function и(х, у) %3 3х + 4y a. Is the utility function homothetic? Explain. b. Under what condition will the consumer purchase good x alone?
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