Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2} Consider Bob’s preferences represented by the utility function in Question 1. Which of the following is correct? (A) Bob’s preferences are not homothetic. (B) Bob’s preferences are not transitive. (C) Bob’s preferences are not convex. (D) A typical indifference curve for Bob’s preferences is a straight line. (E) None of the above
Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2} Consider Bob’s preferences represented by the utility function in Question 1. Which of the following is correct? (A) Bob’s preferences are not homothetic. (B) Bob’s preferences are not transitive. (C) Bob’s preferences are not convex. (D) A typical indifference curve for Bob’s preferences is a straight line. (E) None of the above
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.8P
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Q1. Bob has a utility function defined over goods 1 and 2:
u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}
Consider Bob’s preferences represented by the utility function in
Question 1. Which of the following is correct?
(A) Bob’s preferences are not homothetic.
(B) Bob’s preferences are not transitive.
(C) Bob’s preferences are not convex.
(D) A typical indifference curve for Bob’s preferences is a straight line.
(E) None of the above.
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