Asked by
Ithzayana Quilihua
on Oct 14, 2024
Verified
Charles's utility function is U(x, y) xy.Anne's utility function is U(x, y) 1,000xy.Diana's utility function is xy.Elizabeth's utility function is U(x, y) 1/(xy 1) .Fergie's utility function is xy 10,000.Margaret's utility function is x/y.Philip's utility function is x(y 1) .(The goods x and y are two very expensive goods.We leave you to speculate about what they are.) Which of these persons have the same preferences as Charles?
A) Everybody except Diana
B) Anne and Fergie
C) Anne, Fergie, and Elizabeth
D) None of them
E) All of them
Utility Function
A mathematical representation that ranks the preferences of consumers or entities based on the consumption of goods and services.
Preferences
Refers to the ordering of different alternatives by individuals based on their values, satisfaction, or utility they provide.
Expensive Goods
Products or services that have a high price relative to their intrinsic value or compared to other alternatives in the market.
- Uncover and interpret the qualities of different utility models, such as quasilinear, homothetic, and perfect substitutes.
Verified Answer
JN
Learning Objectives
- Uncover and interpret the qualities of different utility models, such as quasilinear, homothetic, and perfect substitutes.