Consider an agent whose preferences over any couple (r1, 22), 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.

Consider an agent whose preferences over any couple (r1, 22), 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.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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