Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B U (x₁x₂)=40x₁+30x - 10000 1 2 D U(x₁,x₂) = 4x₁ + 3x + 1000 2 U (x₁,x₂) = min {4x₁, 3x₂} U(x₁x₂) = 16x² +24x x + 9x² 2 (E) More than one of the above does not represent Pete's preferences.

Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B U (x₁x₂)=40x₁+30x - 10000 1 2 D U(x₁,x₂) = 4x₁ + 3x + 1000 2 U (x₁,x₂) = min {4x₁, 3x₂} U(x₁x₂) = 16x² +24x x + 9x² 2 (E) More than one of the above does not represent Pete's preferences.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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