On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min {x, 2y). The currency of Hyperion is the doggerel. In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit. In 2000, the price of x was 4 doggerels per unit and the price of y was 4 doggerels per unit. Paasche price index of prices in 2000 relative to prices in 1850 is 1. 2.67. 2. 3. not possible to determine without further information.

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min {x, 2y). The currency of Hyperion is the doggerel. In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit. In 2000, the price of x was 4 doggerels per unit and the price of y was 4 doggerels per unit. Paasche price index of prices in 2000 relative to prices in 1850 is 1. 2.67. 2. 3. not possible to determine without further information.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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