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

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

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
D
E
U (x₁,x₂) = 40x₁+30x - 10000
2
U(x₁,x₂) = 4x₁+3x₂+ 1000
2
U (x₁,x₂) = min {4x₁, 3x₂}
U(x,x)=16x² +24xx₂+9x²
More than one of the above does not represent Pete's preferences.

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