Suppose consumer are always ready to trade k units of good X for w units of good Y. Then, which of the following utility function represents this preference? U(X,Y) = min{wX + kY). O U(X,Y) = wX + kY. O U(X,Y) = min{kX, wY}. O U(X,Y) = kX + wY.

Suppose consumer are always ready to trade k units of good X for w units of good Y. Then, which of the following utility function represents this preference? U(X,Y) = min{wX + kY). O U(X,Y) = wX + kY. O U(X,Y) = min{kX, wY}. O U(X,Y) = kX + wY.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose consumer are always ready to trade k units of good X for w units of good Y. Then, which of the
following utility function represents this preference?
O U(X,Y) = min{wX + kY}.
O U(X,Y) = wx + kY.
O U(x,Y) = min(kX,wY}.
U(X,Y)
kX + wY.

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