Consider the following Leontief preferences: U(Dc.DE) = min{2Dc,DĘ}. where De and D, denote the consumption of Cloth and Food, respectively. Which of the following statements is true? O A. The consumer always wants to consume Cloth and Food in equal amounts, e.g., 1 unit of Cloth per unit of Food O B. The consumer always wants to consume twice as many units of Cloth than Food, e.g., 2 units of Cloth per unit of Food O C. The consumer always wants to consume twice as many units of Food than Cloth, e.g., 2 units of Food per unit of Cloth O D. None of the above

Consider the following Leontief preferences: U(Dc.DE) = min{2Dc,DĘ}. where De and D, denote the consumption of Cloth and Food, respectively. Which of the following statements is true? O A. The consumer always wants to consume Cloth and Food in equal amounts, e.g., 1 unit of Cloth per unit of Food O B. The consumer always wants to consume twice as many units of Cloth than Food, e.g., 2 units of Cloth per unit of Food O C. The consumer always wants to consume twice as many units of Food than Cloth, e.g., 2 units of Food per unit of Cloth O D. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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