Which of the following statement is TRUE based on this question : A utility function with 2 goods (X,Y) is given by U = X^1/2Y. If there’s 3 bundles, bundle A = (9,3); bundle B = (4,1); bundle C = (16, 4

Which of the following statement is TRUE based on this question : A utility function with 2 goods (X,Y) is given by U = X^1/2Y. If there’s 3 bundles, bundle A = (9,3); bundle B = (4,1); bundle C = (16, 4

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Bundle A > F, B > C, H > D, E > G Bundle A > G, B ~ C, D > H, E > D

U (A) > U (B) > U (C) or A > B > C U (C) > U (A) > U (B) or C > A > B

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