Market research revealed that the customers can be separated into 5 groups according to their preferences over bundles of goodxs x and y. The respective empirical utility functions were constructed and they look as follows: 1. U1(x.y) = 2x+5y. 2. U2(x.y) = 100/(2x+5y). 3. U3(x.y) = 3(2x+5y)0.5 4. U4(x.y) = 7(2x+5y)2. 5. U5(x.y) = -150/(2x+5y). How many different preferences were identified by the market research. 0 1 O 2 O 3 O 4 O 5

Market research revealed that the customers can be separated into 5 groups according to their preferences over bundles of goodxs x and y. The respective empirical utility functions were constructed and they look as follows: 1. U1(x.y) = 2x+5y. 2. U2(x.y) = 100/(2x+5y). 3. U3(x.y) = 3(2x+5y)0.5 4. U4(x.y) = 7(2x+5y)2. 5. U5(x.y) = -150/(2x+5y). How many different preferences were identified by the market research. 0 1 O 2 O 3 O 4 O 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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